Executive Compensation and Relative Performance Evaluation ...

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.

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 Compensation

CEO compensation contracts are in general tied to performance. A typical CEO in large US firms receives on average 75% of his pay in the form of performance- ...

Relative performance evaluation and executive compensation

First, the regulation of executive cash compensation is expected to reduce the effect of RPE. For example, when cash compensation is close to the limit, even if ...

Relative Performance Evaluation and the Peer Group Opportunity Set

The key feature of a relative performance plan is that executives' pay is determined based on the performance of their firm compared to the ...

Relative Performance Evaluation for Chief Executive Officers

executive compensation, agency theory, relative performance evaluation · Measured individual performance often depends on random factors which also affect the ...

Relative Performance Evaluation in CEO Compensation: A Talent ...

In this article, we investigate a market-for-talent rationale for the use of relative performance evaluation (RPE) in CEO compensation.

Peer Firms in Relative Performance Evaluation

Relative performance evaluation (RPE) in CEO compensation provides insurance against external shocks and yields a more informative measure of CEO actions.

Relative Performance Evaluation and Related Peer Groups in ...

ABSTRACT: This study examines the explicit use of relative performance evaluation. (RPE) in executive compensation contracts and the selection of RPE peers.

Relative Performance Evaluation in CEO Compensation: A Talent ...

Relative Performance Evaluation in CEO Compensation: A Talent-Retention Explanation - Volume 55 Issue 7.

Relative Performance Evaluation and Long-Term Incentives

In our empirical analysis, we find that incentive contracts use peer earnings differently than peer stock returns and that CEO compensation is positively ...

Relative Performance Evaluation in CEO Compensation: A Talent ...

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

relative performance evaluation for chief executive officers

Executive compensation. Page 4. ROBERT GIBBONS AND KEVIN J. MURPHY contracts based only on firm performance subject executives to vagaries of the stock and ...

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

Relative performance evaluation (RPE) awards have become an important component of executive compensation. We examine whether RPE awards, ...

An Empirical Investigation of the Relative Performance Evaluation of ...

address the issue of relative performance evaluation of corporate executives using salary ... executive compensation and performance measures for 39 firms.

Executive Compensation, Strategic Competition, and Relative ...

We test the predictions empirically using recent data on compensation of executives at large corporations. We find evidence of a positive sensitivity of ...

How relative performance evaluation affects corporate risk taking

First, relative rather than absolute performance matters. Under an RPE contract, the CEO usually receives no award if her firm does not outperform a pre- ...

Relative Performance Evaluation and Strategic Differentiation

Conversely, if the firm performs better than expected, the CEO's compensation decreases with increasing peer performance.13 In summary, the ...

Relative performance evaluation and the use of discretionary ...

In this study, I examine the extent to which firms rely on relative performance evaluation (RPE) when setting executive compensation.

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 ...