Incentive effects of performance-based compensation schemes for management may be weakened or biased by macroeconomic influences on remuneration. These influences can be seen as reflecting luck from the CEO’s perspective. In this chapter we present a model for how to avoid compensating CEO for...

Leading, coincident, and lagging indicators continue to corroborate Mitchell's view that they reflect crucial sequential changes in economic activity. Lagging indicators, most especially in inverted form, exhibit long if variable leads at peaks, thereby becoming the first anticipation of a...