. However, recent evidence suggests that high-powered incentives also provide managers with incentives to manipulate the firm … firm hierarchy — division managers and Chief Financial Officers — are likely to have similar incentives, and perhaps even …, previous research focuses on equity incentives and largely ignores other elements of incentive pay. We contribute to this …

The extant literature has used measurements of CEO risk-taking incentives which do not include the effects of …-taking incentives but also proposes a new, more direct, measure of risk-taking incentives — compensation gamma. Results show that vega …-taking incentives under normal conditions …

-taking incentives in addition to effort incentives. We develop a stylized principal-agent model that captures the interdependence … between firm risk and managerial incentives. We calibrate the model to individual CEO data and show that it can explain … with the almost uniform use of at-the-money stock options. We conclude that the provision of risk-taking incentives is a …

In this updated Closer Look, we examine the tensions between corporate culture, financial incentives, and employee … do you maximize the positive contribution that incentives make to culture while minimizing potentially negative outcomes …