The topic of executive compensation elicits strong emotions among corporate stakeholders and practitioners. On the one hand are those who believe that chief executive officers in the United States are overpaid. On the other hand are those who believe that CEOs are simply paid the going...

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...

This paper develops an estimable model to quantify the efficiency loss arising from both risk sharing and talent misallocation due to the presence of moral hazard in the market for CEOs. I estimate the model parameters characterizing CEOs' preferences, firms' technologies, and their productive...