This paper demonstrates that executive compensation convexity, measured as the sensitivity of managerial equity … compensation portfolios to stock volatility, predicts firm-specific crashes. A bottom-to-top decile change in compensation … contrast, there is no robust evidence of a symmetric relation between compensation convexity and a firm's idiosyncratic …

How does the mandated disclosure of executive compensation affect the dynamics of compensation within a peer group of … time. These effects occur when participants – i.e., managers and firms – have rational expectations and develop forecasts … individual firm. When participants ignore such process and develop forecasts that naively extrapolate from disclosed compensation …

compensation of managers switching between firms with different SPI …We study the motive of using equity-based pay in executive compensation: the risk-sharing motive versus the performance … performance-measuring motive. The SPI effect on compensation is stronger in financially-constrained firms, more diversified firms …

In analyzing the ethics of executive compensation, this paper examines the issue from the standpoint of three prominent … convergent conclusion about the importance of open and fair executive selection and compensation-setting processes to the …

, and the explicit incentives made possible by contingent compensation. We show that managers' career concerns create …This paper considers a two-period model in which managers have superior information about their ability to forecast the … realization of given investment projects. Firms compete for managers by offering short-run contracts. As future salaries depend on …

The regulation of executive compensation is like the phoenix of corporate debate. Every once in a while it rises from … the ashes, dominates public debate with strong statements regarding efficiency, justice, and what managers "deserve" - and … corporations in society. Through arguments and public outcry regarding executive compensation, the question implicitly raised but …

Prior literature provides compelling evidence of an asymmetric relation between executive bonus compensation and … earnings performance. In particular, this literature reports that compensation committees assign greater weight to good … support for critics who claim that compensation committees blindly protect executives from earnings underperformance. We …

Although stock options are commonly observed in chief executive o±cer (CEO) compensation contracts, there is …

performance sensitivity of CEO compensation is largely heterogeneous. -- Performance-related pay ; screening ; choking under …