I explore CEOs' incentives to select firm strategies and to acquire firm-specific skills when CEOs have job-hopping opportunities. Several features of managerial compensation, such as benchmarking of pay to larger and more prestigious companies, payments unrelated to past performance,...

The relative performance evaluation hypothesis postulates that market-wide and industry-wide performance should not affect the likelihood of CEO involuntary turnover. However, recent academic literature has documented that following poor industry and market performance the likelihood of CEO...

We study the relation between innovation quality and managerial time horizon, measured by the time remaining until the end of fixed-term CEO employment contracts. Firms with longer CEO horizons produce more important innovation on average: one additional year in horizon is associated with 8%...

We study the role of the contractual time horizon of CEOs for CEO turnover and corporate policies. Using hand-collected data on 3,954 fixed-term CEO contracts, we show that remaining time under contract predicts CEO turnover. When contracts are close to expiration, turnover is more likely and is...

This study investigates the relation between the use of explicit employment agreements (EA) and CEO compensation. Overall, our findings are broadly consistent with the predictions of Klein, Crawford, and Alchian (1978) that an EA is used to induce CEOs to make firm-specific human capital...