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Relative performance evaluation (RPE) is, at least on paper, enjoying widespread popularity in determining the level of executive compensation. Yet existing empirical evidence of RPE is decidedly mixed. Two principal explanations are held responsible for this discord. A constructional challenge...
Persistent link: https://www.econbiz.de/10011526823
Relative performance evaluation (RPE) is, at least on paper, enjoying widespread popularity in determining the level of executive compensation. Yet existing empirical evidence of RPE is decidedly mixed. Two principal explanations are held responsible for this discord. A constructional challenge...
Persistent link: https://www.econbiz.de/10011569604
Relative performance evaluation (RPE) is, at least on paper, enjoying widespread popularity in determining the level of executive compensation. Yet existing empirical evidence of RPE is decidedly mixed. Two principal explanations are held responsible for this discord. A constructional challenge...
Persistent link: https://www.econbiz.de/10011384066
Should principals explain and justify their evaluations? Suppose the principal's evaluation is private information, but she can provide justification by sending a costly cheap-talk message. If she does not provide justification, her message space is restricted, but the message is costless. I...
Persistent link: https://www.econbiz.de/10010361447
Consider managers evaluating their employees' performances. Should managers justify their subjective evaluations … attributed to biased managers. I show that these effects occur in optimal contracts without any biased behavior. …
Persistent link: https://www.econbiz.de/10011930440
Persistent link: https://www.econbiz.de/10009317422
, but cannot always be eliminated. We apply our results to the choice between specialist and generalist middle managers …, where a trade-off between expertise and bias may arise. …
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