search query: @author Aggarwal, R. / total: 40
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| Author: | Aggarwal, R. Samwick, A. |
| Title: | The other side of the trade-off: the impact of risk on executive compensation |
| Journal: | Journal of Political Economy
1999 : FEB, VOL. 107:1, p. 65-105 |
| Index terms: | RISK EXECUTIVES COMPENSATION |
| Language: | eng |
| Abstract: | The principal-agent model of executive compensation is of central importance to the modern theory of the firm and corporate governance, yet the existing empirical evidence supporting it is quite weak. The key prediction of the model is that the executive's pay-performance sensitivity is decreasing in the variance of the firm's performance. The authors demonstrate strong empirical confirmation of this prediction using a comprehensive sample of executives at large corporations. |
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