Using data that includes specific contractual details of Relative Performance Evaluation (RPE) contracts granted to executives for 1,833 firms for the period 1998 to 2012, we develop new methods to characterize RPE awards and measure their value and incentive properties. The frequency in the use...

This article looks at the individual elements of compensation packages as well as design features of short-term and long-term incentive plans (STIPs and LTIPs) among CEOs and senior executives of Russell 3000 companies. Data is from companies that filed proxy statements between July 1, 2019, and...

Purpose – The purpose of this study is to investigate the association between corporate risk and the interaction between CEO incentive compensation and CEO overconfidence.Design/methodology/approach – This empirical study performs random and fixed effects regression analysis. It uses...

We analyze the effects of optimism and overconfidence when the manager's compensation package includes severance pay and the CEO has bargaining power. We find that optimism does not affect incentive pay but increases severance pay with a negative effect on profit. Overconfidence, on the...