We investigate the relationship between chief executive officer (CEO) compensation and innovation. In an empirical … positively related to patents and citations to patents. In addition, convexity of options has a positive effect on innovation. We … relationship, with patents and citations to patents. Finally, we show that subsequent to project failure managers' compensation …

more sensitive to the firm's stock price the innovation performance of a firm improves. Entrenched managers, however, are …This paper investigates whether aligning manager and owner incentives can improve the innovation performance of firms …-term incentives have little impact on innovation. Higher managerial tenure increases the probability of R&D spending and innovation …

Whether a manager leads the innovation efforts of a firm in line with shareholder preferences has a substantial impact … general equilibrium model of firm-level innovation with agency frictions and endogenous determination of executive contracts … leads to more incentivized contracts and boosts innovation, with substantial benefits for the shareholders as well as the …