As the share of all income going to the top 1 percent has risen over the past four decades, so has the share of top incomes coming from labor income relative to capital income. The rise in labor income is mainly due to the explosion in executive compensation over the same period—mostly...

Although stock return-based performance metrics are common in CEO compensation contracts in the US, similar CEO pay arrangements may not be appropriate in India given higher stock return volatility and lower liquidity. Instead, sales growth as a performance metric could be useful in...

We examine the benefits and costs of internal capital allocation with costly information acquisition by an executive officer in the headquarter of the multi-divisional firm. Then we characterize the optimal compensation scheme for the officer that maximizes the expected firm value. The...

This study examines determinants of chairman compensation in a supervisory board setting and, specifically, the relationship between chairman and CEO compensation. Using a sample of publicly listed firms in Sweden, the study indicates that chairman compensation – despite its fixed nature –...

The recent global financial crisis believed to have in part been created by excessive risk taking by bank executives has heightened the concerns around the compensation paid to bank CEOs and executives. The question being asked is whether bank executive compensation is justified by bank...

Based on a panel of US firms over the period of 1992 to 2004, we evaluated whether firms managed by female CEOs exhibit the same performance as firms managed by male CEOs. We also examined if the gender of the CEO affects the firm risk level, and if the compensation packages that boards give to...

This paper analyses the determinants of disclosure in compensation reports. Using a hand-collected dataset of 429 observations we assess which compensation, governance and ownership variables influence the quality of disclosure in compensation reports from 2006 to 2014 in a German setting....

This paper analyses the determinants of disclosure in compensation reports. Using a hand-collected dataset of 429 observations we assess which compensation, governance and ownership variables influence the quality of disclosure in compensation reports from 2006 to 2014 in a German setting....

This article contributes to the literature by indicating how certain monetary policies impact the compensation incentives of US managers to adopt riskier business policies. Specifically, based on the agency problems between shareholders and managers and between shareholders and creditors, a...

The aim of executive compensation plans is to incentivize executives to maximize long-term firm value. Past research shows that executives’ pay is determined by short-term stock performance to a substantial degree. This paper tests for distributional differences in the time horizon of the...