In a competitive managerial labor market, compensation contracts should not depend on public attitudes or social norms regarding income inequality or "fair pay". In contrast to the standard view of optimal incentive design, we find that public opinion impacts executive compensation. We show that...

This paper investigates the detail and dynamics of how contractual and relational governance mechanisms are deployed in managing complex, long-term public-private supply arrangements. Using empirical data from two UK Private Finance Initiative (PFI) cases, the paper analyses the interplay of...