. We find that: (1) PSP sponsors successfully identify firms that suffer from a misalignment of managers and shareholders …' interests; (2) CEOs' pay-for-performance sensitivity increases in the post-proposal period; and (3) shareholders benefit through … performance (NPSPs). Collectively, our results indicate that shareholders benefit from this pay-performance activism through PSPs …

This paper studies how hedge fund activism reshapes board monitoring, CEO incentives and compensation. I find that … activists target CEOs who have co-opted the board, have poor performance records and weak equity portfolio incentives, are less … oust underperforming CEOs, strengthen CEO incentives, and increase the use of RPE. CEO pay levels rise following activism …

reduce the risk-taking incentives of shareholders. We argue that shareholders can also use manager-specific CoCo bonds to …This paper presents a model of shareholders' willingness to exert effort to reduce the likelihood of bank distress, and … their impact on shareholder risk-taking incentives. We also find that ‘anytime' CoCos (CoCo bonds trigger-able anytime at …