Relative Performance Evaluation in CEO Compensation: A Talent-Retention Explanation
نویسندگان
چکیده
منابع مشابه
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We examine how relative performance evaluation (RPE) is incorporated in CEO compensation contracts. We find common features across contracts. First, firms tend to base the awards on the ranking of the CEO relative to peers. Second, the relation between performance and awards is highly nonlinear. And third, the award is based on a performance horizon of around three years. Once these features ar...
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متن کاملA Behavioral Explanation fo the Relative Performance Evaluation Puzzle (2003)
– We study the effects of competitive preferences, where Chief Executive Officers (CEOs) compare their wage to the wage of other CEOs within the same industry, and derive utility from being ahead of them. We show that such social concerns work in the direction of CEO wages being positively correlated, in contrast to the Relative Performance Evaluation hypothesis, but consistent with several emp...
متن کاملA Behavioral Explanation of the Relative Performance Evaluation Puzzle
We study the effects of competitive preferences, where Chief Executive Officers (CEOs) compare their wage to the wage of other CEOs within the same industry, and derive utility from being ahead of them. We show that such social concerns work in the direction of CEO wages being positively correlated, in contrast to the Relative Performance Evaluation hypothesis, but consistent with several empir...
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ژورنال
عنوان ژورنال: Journal of Financial and Quantitative Analysis
سال: 2019
ISSN: 0022-1090,1756-6916
DOI: 10.1017/s0022109019000504