Download or read book Performance Incentives Performance Pressure and Executive Turnover written by Narayanan Subramanian and published by . This book was released on 2003 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relationship between the optimal incentive contract and the firm's decision to fire a manager for poor performance. We first derive some theoretical results using a simple principal-agent model, and then examine the empirical evidence on the incidence of forced turnover among CEOs with different compensation contracts. We find that CEOs with steeper compensation contracts (i.e., with greater incentives) are more likely to be fired following poor firm performance. Logit estimations indicate that among poorly performing firms, a CEO receiving incentives at the 60th percentile level are roughly 10% more likely to be fired than a CEO with incentives at the 40th percentile. The results are robust to various performance and incentive measures. We also find that the performance pressure was greater in the latter half (1997-99) of the sample than in the first (1993-96). Increased firing pressure might have been one of the factors contributing to the accounting shenanigans of the late 1990's.

Download or read book Pay Without Performance written by Lucian A. Bebchuk and published by Harvard University Press. This book was released on 2004 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: The company is under-performing, its share price is trailing, and the CEO gets...a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers' influence over their own pay--and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders. Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm's length with the executives they are meant to oversee. They give a richly detailed account of how pay practices--from option plans to retirement benefits--have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives' unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers' incentives. This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.

Download or read book The New Standards written by Richard N Ericson and published by John Wiley & Sons. This book was released on 2010-05-20 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: Make the most of the new standards Every year companies spend millions of dollars on executive incentives. All too often, however, these programs provide a very weak link between pay and performance, with executives potentially rewarded as much for bad decisions as they are for good ones. Packed with examples, The New Standards insightfully discusses: How to link pay with business results that create long-term value Why incentive structures can discourage management from reasonable risk-taking, in some cases, and can enocourage imprudent risks in others The full range of inputs that should guide proper incentive policy Why performance measures must reflect both the quality and quantity of earnings Risk, executive behavior, and the cost of capital How to use valuation criteria when choosing metrics The pros and cons of common approaches to stock-based incentive pay Written by noted compensation expert Richard Ericson, this innovative book is a must-read for directors and management concerned with executive compensation design or financial performance measurement and forecasting. Get the guidance and concrete solutions you need to thoroughly reexamine your executive compensation policies and practices with the principles and financial maxims found in The New Standards.

Download or read book NBER Reporter written by National Bureau of Economic Research and published by . This book was released on 2003 with total page 512 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Compensation and Motivation written by Thomas J. McCoy and published by Createspace Independent Pub. This book was released on 2012-09-01 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Compensation and Motivation" is the first book in the Culture of Partnership series. With a strong foundation in social science and behavioral psychology, this book will show you how to develop incentive plans that work! Turn the cost of compensation into an investment that will increase revenue and profit, enhance the value of the organization and motivate all employees to deliver the business strategy. Compensation and Motivation describes how to develop the right reward system that will engage and motivate the target audience. Employees come to work for the rewards, either material (money), social (recognition and appreciation) or both. Mr. McCoy shows how to combine behavioral psychology and business strategy to create a reward system that offers fulfillment to the employees if they deliver on the company goals. This book goes beyond just showing how to link pay to performance. It shows how to balance the array of rewards that a company can offer (cash, benefits, meaningful work, social recognition and appreciation) so that the maximum motivation is obtained with the least overall cost. It's called "the mix that motivates." Since this book was initially published, over 65 percent of all businesses now offer some form of incentive to all employees. However, many of those efforts are ineffective in achieving the organization's goals. This book shows how to engage all employees in the business, motivate them to perform at exceptional levels, create a common focus and a feeling of shared destiny (teamwork.) Learn how to become an employer of choice. Learn how to engage employees so that the operation "runs itself." Learn how to use compensation as the engine that drives a Culture of Partnership.

Download or read book Performance Incentives Within Firms written by Raj Aggarwal and published by . This book was released on 1999 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical research on executive compensation has focused almost exclusively on the incentives provided to chief executive officers. However, firms are run by teams of managers, and a theory of the firm should also explain the distribution of incentives and responsibilities for other members of the top management team. An extension of the standard principal-agent model to allow for multiple signals of effort predicts that executives who have other, more precise signals of their effort than firm performance will have compensation that is less sensitive to the overall performance of the firm. We test this prediction in a comprehensive panel dataset of executives at large corporations by comparing executives with explicit divisional responsibilities to those with broad oversight authority over the firm and to CEOs. Controlling for executive fixed effects and the level of compensation, we find that CEOs have pay-performance incentives that are $5.85 per thousand dollar increase in shareholder wealth higher than the pay-performance incentives of executives with divisional responsibility. Executives with oversight authority have pay-performance incentives that are $1.26 per thousand higher than those of executives with divisional responsibility. The aggregate pay-performance sensitivity of the top management team is quite substantial, at $30.24 per thousand dollar increase in shareholder wealth for the median firm in our sample. Our work sheds light on the alignment of responsibility and incentives within firms and suggests that the principal-agent model provides an appropriate characterization of the internal organization of the firm.

Download or read book The Theory of Corporate Finance written by Jean Tirole and published by Princeton University Press. This book was released on 2010-08-26 with total page 657 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Magnificent."—The Economist From the Nobel Prize–winning economist, a groundbreaking and comprehensive account of corporate finance Recent decades have seen great theoretical and empirical advances in the field of corporate finance. Whereas once the subject addressed mainly the financing of corporations—equity, debt, and valuation—today it also embraces crucial issues of governance, liquidity, risk management, relationships between banks and corporations, and the macroeconomic impact of corporations. However, this progress has left in its wake a jumbled array of concepts and models that students are often hard put to make sense of. Here, one of the world's leading economists offers a lucid, unified, and comprehensive introduction to modern corporate finance theory. Jean Tirole builds his landmark book around a single model, using an incentive or contract theory approach. Filling a major gap in the field, The Theory of Corporate Finance is an indispensable resource for graduate and advanced undergraduate students as well as researchers of corporate finance, industrial organization, political economy, development, and macroeconomics. Tirole conveys the organizing principles that structure the analysis of today's key management and public policy issues, such as the reform of corporate governance and auditing; the role of private equity, financial markets, and takeovers; the efficient determination of leverage, dividends, liquidity, and risk management; and the design of managerial incentive packages. He weaves empirical studies into the book's theoretical analysis. And he places the corporation in its broader environment, both microeconomic and macroeconomic, and examines the two-way interaction between the corporate environment and institutions. Setting a new milestone in the field, The Theory of Corporate Finance will be the authoritative text for years to come.

Download or read book Handbook of Empirical Corporate Finance written by Bjørn Espen Eckbo and published by Elsevier. This book was released on 2011-10-13 with total page 605 pages. Available in PDF, EPUB and Kindle. Book excerpt: This second volume of a two-part series examines three major topics. First, it devotes five chapters to the classical issue of capital structure choice. Second, it focuses on the value-implications of major corporate investment and restructuring decisions, and then concludes by surveying the role of pay-for-performance type executive compensation contracts on managerial incentives and risk-taking behavior. In collaboration with the first volume, this handbook takes stock of the main empirical findings to date across an unprecedented spectrum of corporate finance issues. The surveys are written by leading empirical researchers that remain active in their respective areas of interest. With few exceptions, the writing style makes the chapters accessible to industry practitioners. For doctoral students and seasoned academics, the surveys offer dense roadmaps into the empirical research landscape and provide suggestions for future work. - Nine original chapters summarize research advances and future topics in the classical issues of capital structure choice, corporate investment behavior, and firm value - Multinational comparisons underline the volume's empirical perspectives - Complements the presentation of econometric issues, banking, and capital acquisition research covered by Volume 1

Download or read book Turning Turnover Around written by Mark Vonrhein and published by iUniverse. This book was released on 2009-02 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: The costs of employee turnover can be staggering. Not only do they include fully-loaded payroll costs of a vacant position, but they can also rack up overtime and consume managers' time to recruit and train new hires. Add in lost productivity, and you have a major problem. Reducing employee turnover will clearly improve how your business functions and performs financially. In Turning Turnover Around, Mark Vonrhein synthesizes years of experience working with hundreds of entry-level employees. Vonrhein has successfully used a five-point plan-the Performance Compensation Program-to increase productivity, keep employees happy, and increase profitability. The Plan is straightforward. Start entry-level employees below industry average salaries, then clearly define performance goals and post performance results daily. Then, give feedback on a regular basis, and reward your high-performers with incremental, and typically more frequent, pay raises. To supplement his program, Vonrhein provides wage models that help you match an employee's pay level to his or her performance. He also shares a wealth of information on the program's impact, which ranges from more engaged and productive workers, to a healthier bottom line. Combine Vonrhein's program with his "management tune-up" tips and you'll soon see turnover turning around.

Download or read book Britain s Economic Performance written by Tony Buxton and published by Routledge. This book was released on 2005-08-08 with total page 608 pages. Available in PDF, EPUB and Kindle. Book excerpt: This new and substantially revised edition of Britain's Economic Performance provides a unique assessment of the current state of the supply-side of the economy. Written by a team of highly experienced, policy oriented applied economists, this volume will be a valuable source of reference, analysis and guidance for students and policy-makers.

Download or read book Enterprise IT Governance Business Value and Performance Measurement written by Shi, Nan Si and published by IGI Global. This book was released on 2010-10-31 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This book provides evidence-based insights into the management and contribution of IT in organizations, to offer practical advice & solutions, models and tools that are instrumental in getting business value from IT"--Provided by publisher.

Download or read book The Handbook of the Economics of Corporate Governance written by Benjamin Hermalin and published by Elsevier. This book was released on 2017-09-18 with total page 762 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Handbook of the Economics of Corporate Governance, Volume One, covers all issues important to economists. It is organized around fundamental principles, whereas multidisciplinary books on corporate governance often concentrate on specific topics. Specific topics include Relevant Theory and Methods, Organizational Economic Models as They Pertain to Governance, Managerial Career Concerns, Assessment & Monitoring, and Signal Jamming, The Institutions and Practice of Governance, The Law and Economics of Governance, Takeovers, Buyouts, and the Market for Control, Executive Compensation, Dominant Shareholders, and more. Providing excellent overviews and summaries of extant research, this book presents advanced students in graduate programs with details and perspectives that other books overlook. - Concentrates on underlying principles that change little, even as the empirical literature moves on - Helps readers see corporate governance systems as interrelated or even intertwined external (country-level) and internal (firm-level) forces - Reviews the methodological tools of the field (theory and empirical), the most relevant models, and the field's substantive findings, all of which help point the way forward

Download or read book Financial Management for Nurse Managers and Executives E Book written by Cheryl Jones and published by Elsevier Health Sciences. This book was released on 2018-01-29 with total page 422 pages. Available in PDF, EPUB and Kindle. Book excerpt: - NEW! Information about the Affordable Care Act details how changes and developments affects coverage for millions of Americans. - NEW! Value-Based Payment reimbursement information details what nurse executives need to know in order to use this new system - NEW! Coverage of Accountable Care Organizations provides current information on one of the emerging forms of managed care and how it works within the financial system of healthcare. - NEW! Team-and Population-Based care information covers how to work with healthcare professionals outside of nursing.

Download or read book Pay for Results written by Mercer, LLC and published by Wiley. This book was released on 2009-03-30 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: The numerous incentive approaches and combinations and their implications can be dizzying even to the compensation professional. Pay for Results provides a road map for developing and implementing executive incentives that drive business needs and strategy. It is filled with specific analytic tools, including tables, exhibits, forms, checklists. In addition, it uncovers myths in performance measurement strategy and design. Timely and thorough, this book expertly shows businesses how to drive their specific needs and strategy. Human resources and compensation officers will discover how to apply performance metrics that align with shareholder investment.

Download or read book Research Handbook on Executive Pay written by John S. Beasley and published by Edward Elgar Publishing. This book was released on 2012-01-01 with total page 553 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research on executive compensation has exploded in recent years, and this volume of specially commissioned essays brings the reader up-to-date on all of the latest developments in the field. Leading corporate governance scholars from a range of countries set out their views on four main areas of executive compensation: the history and theory of executive compensation, the structure of executive pay, corporate governance and executive compensation, and international perspectives on executive pay. The authors analyze the two dominant theoretical approaches – managerial power theory and optimal contracting theory – and examine their impact on executive pay levels and the practices of concentrated and dispersed share ownership in corporations. The effectiveness of government regulation of executive pay and international executive pay practices in Australia, the US, Europe, China, India and Japan are also discussed. A timely study of a controversial topic, the Handbook will be an essential resource for students, scholars and practitioners of law, finance, business and accounting.

Download or read book Executive Compensation written by United States. Congress. Senate. Committee on Finance and published by . This book was released on 2006 with total page 312 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Limits to Relative Performance Evaluation written by Irina Barakova and published by . This book was released on 2008 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: