This paper demonstrates that large firms prefer to hire younger workers, which is implied by the firm-specific human capital investment theory. A simple model consistent with the implication is proposed to study large firms' hiring decisions and compensation structures. The main predictions of...

We show that long-term compensation is associated with higher pay in the financial industry and the legal sector. Then, using a detailed survey of law school graduates, we explore why firms use long-term compensation. We find that individuals with jobs that make them highly visible and that...

With new rules on conducting an annual compensation risk assessment for publicly-traded companies approved by the SEC on December 16, 2009, each organization needs to perform an evaluation of its compensation program, paying special attention to the risk it is assuming with the policies and...