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We examine the relation between executive compensation and market-implied default risk for listed insurance firms from … extensive use of stock options leads to higher future default risk for insurance firms. We argue that this is because option …
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The "ratchet effect" refers to a phenomenon where workers whose compensation is based on productivity strategically restrict their output, relative to their capability, because they rationally anticipate that high levels of output will be met with increased or "ratcheted-up" expectations in the...
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To align employees’ interests with the firm’s goals, employers often use performance-based pay, but designing such a … number of metrics by which they evaluate their employees, but complex compensation plans may be difficult for employees to …
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Today's managers are facing challenges that stem from overseeing a workforce in foreign countries. The question arises … how to compensate and motivate employees in different countries effectively and efficiently. Based on an empirical study … among employees of a multinational corporation (MNC) in Germany and the USA, Marjaana Gunkel shows that the employees in …
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