Paying for staying : managerial contracts and the retention motive
Working paper
Permanent lenke
http://hdl.handle.net/11250/163346Utgivelsesdato
2012-03Metadata
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- Discussion papers (SAM) [662]
Sammendrag
Talented managers may leave the firm in order to work elsewhere. Focusing on the
portability of managers' resources, we develop a model in which managerial compensation
is designed to prevent inefficient departure. The model rationalizes the widespread use of
fl at salaries in combination with performance-vesting stock options and is consistent with
observed differences in compensation contracts across individuals, firms, industries, and
countries.