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CEO Utility Pay Literature Review

666 bytes added, 17:57, 1 February 2016
Peer choice in CEO compensation
===Peer choice in CEO compensation===
[http://www.sciencedirect.com/science/article/pii/S0304405X12002140 A. M. Albuquerque, G. De Franco, and R. S. Verdi, “Peer choice in CEO compensation,” Journal of Financial Economics, vol. 108, no. 1, pp. 160–181, Apr. 2013.]
*Investigating that firms will report peer compensation values higher than their own CEOs. most research shows this is because they want to justify their CEOs salary. this article claims it is because it represents a reward for "unobserved CEO talent."*Fiscal year 2006*3 measures of CEO talent::#past abnormal performance:#size of past firms managed:#media coverage*CEO talent can also be measured with CEO fixed-effects*the peer pay effect mostly shows the need to pay CEOs more for their talent.*some evidence of self-serving behavior in play*CEO pay is more in line with tighter labor markets than with managerial entrenchment or weak corporate governance.
===Performance Terms in CEO Compensation Contracts===
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