This study investigates whether and why compensation committees shield CEO compensation from income-decreasing effects of strategic expenditures. We document that firms do shield recurring expenditures such as research and development and advertising expenditures. We also find that firms shield...

Increasingly, firms are augmenting financial measures of performance with non-financial measures of performance with a view to instill a long-run focus and reduce managerial myopia. Thus, in this paper, we utilize an agency-theoretic model to examine closely how financial measures cause...

We show that prices and incentives recommended by the salesforce literature when targeting a profitable segment can attract unprofitable customers, particularly when salespeople have high productivity and low risk (i.e., risk aversion times uncertainty). Therefore, when customers are...

Changes in the internal and the external environment of organizations are causing many of them to redesign individual jobs as team functions. Sales organizations, in particular, are responding to increased selling costs by redesigning the selling function to include a support person. The basic...

In this paper, we develop an analytical model of joint maximizing behavior on the part of students and professors to develop policy rules for universities who use student evaluations as tools for increasing professor effort and, thereby, student knowledge. More precisely, we examine the...

Our primary objective in this paper is to analyze a framework that simultaneously examines the role of monitoring and incentives in the design of sales force control systems. Previous research has focused exclusively on the role of incentives in directing salesforce effort. We build on the...