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Although stock options are commonly observed in chief executive o±cer (CEO) compensation contracts, there is …
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We study a principal-agent setting in which both sides learn about future profitability from output, and the project can be abandoned/terminated if profitability is too low. With learning, shirking by the agent both reduces output and lowers the principal's estimate of future profitability. The...
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tied to firm performance, because only a worker in a good quality firm would be willing to defer compensation to an … future pay is tied to firm performance, because only a worker in a good quality firm would be willing to defer compensation … ; compensation ; stock options …
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