Managerial Finance: Volume 25 Issue 9

Selecting optimal executive compensation scheme under uncertainty and the role of the covariance factors

Sangphill Kim, Lowell Alahassane Diallo, Lawrence Klein

Outlines previous research on compensation schemes in situations of uncertainty and explores the effects of three different plans on managers’ output decisions. Discusses the role…

Linking CEO pay to firm performance: empirical evidence from the electric utility industry

Augustine I. Duru, Raghavan J. Iyengar

Outlines previous research on the relationship between CEO compensation and firm performance, arguing that in regulated industries the executive skills sought and performance…

Relative performance evaluation in CEO pay contracts: evidence from the commercial banking industry

Anthony J. Crawford

Reviews previous research on the effects of CEO compensation structure, outlines the criteria for relative performance evaluation (RPE) and notes the paucity of empirical evidence…

The relationship between research & development expenditure and executive compensation in high‐technology industries

Obeua S. Persons

Outlines previous research on the links between R&D expenditure, firm value and executive compensation; and presents a study of the relationship between R&D expenditure and total…

The relationship between pay‐for‐performance contracting and external monitoring

Patrick A. Traichal, George W. Gallinger, Steve A. Johnson

Identifies three approaches to controlling the agent‐principal conflict for CEOs (market discipline, compensation structure and monitoring mechanisms) and reviews previous…

Earnings‐based compensation schemes and discretionary accrual and expenditure decisions over CEO tenure

Ramachandran Natarajan

Classifies previous research on the links between earnings management and managerial opportunism into studies of the links between earnings‐based compensation schemes and…