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We study the role of transparency in a novel three-person profit sharing game in which managers and board directors … hypothesis, but reject the second one: Public transparency actually increases managerial wages as well as board director … compensation, further reducing the revenue share that goes to shareholders. Competition to keep managers further magnifies these …
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An influential literature on the effects of marginal tax rates on the behavior of the rich has claimed that the elasticity of taxable income with respect to the net of tax share is very high possibly exceeding one. These high estimated elasticities imply that cutting taxes on the rich does not...
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We examine how the level and structure of CEO pay is influenced by the characteristics and past experience of the members of the compensation committee, and also how these characteristics and experiences affect the probability of committee appointment. Our main findings indicate that (1) CEO pay...
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