in performance compensation since monitoring managers becomes less efficient. Using data on CEO compensation and … their managers. Increases in managerial reservation wages lead to a reduction in corporate governance investments and a rise … predictions. Firms allow for more managerial entrenchment and offer larger CEO compensation when their industries become more open …

in performance compensation since monitoring managers becomes less efficient. Using data on CEO compensation and … their managers. Increases in managerial reservation wages lead to a reduction in corporate governance investments and a rise … predictions. Firms allow for more managerial entrenchment and offer larger CEO compensation when their industries become more open …

To examine the impact of globalization on managerial compensation, we consider a matching model where firms compete …, while the most able managers obtain a wage increase, less able managers are faced with a reduction in wages. Hence our model … can explain the increasing heterogeneity of CEO compensation that has been observed in the last few decades. …