Relative Performance Evaluation in CEO Compensation

Relative Performance Evaluation for Chief Executive Officers

In contrast to previous research, our empirical evidence strongly supports the RPE hypothesis--CEO pay revisions and retention probabilities are positively and ...

Relative Versus Absolute Performance Evaluation and CEO ...

Our main finding is that relative performance evaluation (RPE) plans provide incentives for CEOs to make decisions that generate more idiosyncratic performance ...

Choice of Peers for Relative Performance Evaluation in Executive ...

One of the primary reasons for firms to use an RPE award is to filter out exogenous shocks to firm performance that are outside of a manager's control. This can ...

Relative performance evaluation in CEO pay - ProQuest

Relating CEO pay to raw firm performance creates compensation risk over that of fixed salary contracts. By evaluating firm performance relative to peer ...

Relative Performance Evaluation in CEO Compensation

De Angelis and Grinstein (2017) show that, among …rms using RPE, 88% measure the rank performance of the CEO relative to peers. Most empirical studies instead ...

Executive Compensation, Strategic Competition, and Relative ... - jstor

Al- though the relative performance evaluation contract reduces the executive's exposure to risk, it provides incentives to take actions that lower industry.

Customer RPE: Using customer performance to filter noise out of ...

Relative performance evaluation and related peer groups in executive compensation contracts. The Accounting Review 86(3): 1007-1043. Green, J. R., and N. L. ...

Relative Performance Evaluation, Pay-for-Luck, and Double-Dipping ...

The first addresses relative performance evaluation (RPE), to which a CEO is subject when his or her compensation depends on firm performance ...

Relative performance evaluation in CEO pay contracts

Relative performance evaluation in CEO pay contracts: evidence from the commercial banking industry - Author: Anthony J. Crawford.

Financial Reporting Comparability and Accounting-Based Relative ...

where Payit is the CEO's compensation for firm i in fiscal year t. FirmPerfit is firm i's own performance, measured by either stock price ...

The relationship between accounting-based relative performance ...

This paper explores the relationship between Accounting-Based Relative Performance Evaluation (RPE) and CEO compensation within the context of corporate ...

[PDF] How is Relative Performance Evaluation Incorporated in CEO ...

We examine how relative performance evaluation (RPE) is incorporated in CEO compensation contracts. We find common features across contracts.

Peer Firms in Relative Performance Evaluation

Agency theory suggests that the compensation of chief executive officers (CEOs) should be linked to firm performance to motivate CEOs to ...

CEO pay and the rise of relative performance contracts - CEPR

De Angelis and Grinstein (2016) report that, by 2007 only 30% of S&P 500 firms used some form of relative performance evaluation in any part of ...

Accounting comparability and relative performance evaluation in ...

We argue that the implementation of accounting-based RPE in CEO compensation relies on identifying peers with both similar economics and similar ...

Relative Performance Evaluation Incentives in CEO Compensation ...

Relative Performance Evaluation Incentives in. CEO Compensation Contracts. Angela Lechermann. Advisor: Tim Keune, Ph.D. Long-Term RPE Use by Year. What is ...

Relative Performance Evaluation in CEO Compensation - OA.mg

Relative performance evaluation (RPE) in chief executive officer (CEO) compensation can be used as a commitment device to pay CEOs for their revealed ...

RELATIVE PERFORMANCE EVALUATION IN EXECUTIVE ...

... Relative Performance Evaluation in Executive Compensation Contracts iii peer ... CEO. Chief executive officer. CFO. Chief financial officer. EPS. Earnings ...

Relative performance evaluation, pay-for-luck, and double-dipping ...

We investigate whether chief executive officer (CEO) pay is linked to firm-specific and/or industry-wide performance only when it results in higher ...

Relative Performance Evaluation in CEO Compensation

2 We also note that the pay-performance relation found in the contracts – a menu of payments depending on the rank of CEO talent relative to peers – is also ...