The Group Dynamics Theory of Executive Compensation

I argue that the problems with CEO compensation in public corporations may be caused by the decision-making flaws rooted in group dynamics.

THE GROUP DYNAMICS THEORY OF EXECUTIVE. COMPENSATION. By. Michael B. Dorff*. * Associate Dean for Research and Professor of Law, Southwestern Law School. J.D..

The Group Dynamics Theory of Executive Compensation

Advancing a new, Group Dynamics Theory, I argue that the problems with CEO compensation in public corporations may be caused by the decision-making flaws rooted ...

Executive Compensation: A Survey of Theory and Evidence

groups in executive compensation contracts. Account. Rev. 86 (3), 1007–1043 ... Underwater options and the dynamics of executive pay-to- performance ...

Executive Compensation: A Modern Primer - Scholars at Harvard

contract theory, corporate finance, corporate governance, labor economics, and income inequality. One side is the “rent extraction”.

New Executive Compensation Research: Peer Group Benchmarking ...

“It indicates that corporate boards need to de-emphasize peer grouping, and increase the emphasis on their company and executive accomplishments ...

CEO compensation: Evidence from the field - ScienceDirect.com

The CEO's intrinsic motivation and personal reputation are seen as most important, yet are absent from nearly all theories. Notably, directors see CEO career ...

Social relationships and group dynamics within the supervisory ...

The managerial power theory (MPT), proposed by Bebchuk et al. (2002), is centered on the idea of the CEO's influence on the compensation-setting ...

Theory and Evidence on the Compensation of Top Executives

We document three new facts about gender differences in the structure of executive compensation. First, female executives receive a lower share of incentive pay ...

The Determinants of Executive Compensation - Oxford Academic

Hence, traditional empirical work from the agency theory perspective hypothesizes a significant association between managerial pay and firm performance— ...

Peer group ties and executive compensation networks - ScienceDirect

Executive compensation is influenced by the selection and actions of a firm's immediate peers. ... Named peers are often biased toward larger firms and better ...

(PDF) The CEO, the Board of Directors and Executive Compensation

How do boards of directors of large US corporations set the compensation levels for chief executive officers (CEOs)? Economic theories are based on ...

Social Relationships and Group Dynamics within the Supervisory ...

As financial performance measures are not the sole determinant of chief executive officer (CEO) compensation, researchers have investigated social ...

Social Relationships and Group Dynamics within the Supervisory ...

The managerial power theory (MPT), proposed by Bebchuk et al. (2002), is centered on the idea of the CEO's influence on the compensation-setting ...

The Behavioural Economics of Executive Incentives - Sage Journals

The two economic theories which underpin the pay-for-performance model of executive compensation are agency theory, made famous by a seminal ...

Compensation Peer Groups and Their Relation with CEO Pay

Peer groups help firms identify the CEO's reservation wage, the CEOs next best employment alternative (Holmstrom and Kaplan 2003). The ...

Executive Compensation Complexity and Firm Performance

5) Stipulated time horizon: Because many contracts stipulate multiple goals, we average the number of months over which an executive has to fulfill their unique ...

MODERN PRINCIPLES for SENSIBLE and EFFECTIVE EXECUTIVE ...

The Group Dynamics Theory of Executive Compensation, Dorff (2007). • Performance for Pay? The Relation Between CEO Incentive Compensation and Future Stock Price ...

Executive Compensation: Consequences and Distributions

This chapter also considers the burgeoning literature on behavioral agency theory, which leads naturally to a comparison of the effects of different types of ...

Executive Compensation - Carlton Fields

Economic theory has not, thus far, fully captured the inner dynamics of director-manager power relationships and information asymmetries and the Student ...