Portfolio Considerations in Valuing Executive Compensation
从管理者视角分析薪酬合同的估值，指出市场不完美导致管理者与股东对薪酬组成部分的估值存在差异，对研究薪酬激励效果和成本效益的学者有参考价值。
This paper analyzes the valuation of a compensation contract from a manager's perspective. This perspective is appropriate, for example, in research on the incentive effects of a compensation plan, because such effects are determined by how the manager's actions affect his valuation of his compensation. In contrast, in a study of the cost-effectiveness of a compensation plan, the shareholders' perspective is appropriate. Measuring the value to a manager of his compensation is difficult because some of the diverse components of compensation packages (e.g., executive stock options and restricted stock) have payoffs that are uncertain when the compensation is granted. In most empirical studies, each component is valued independently (without consideration of the structure of the compensation package as a whole), and these values are summed. Moreover, the values are frequently determined using formulas for publicly traded securities with similar payoff structures (i.e., from the perspective of security market participants). Market imperfections create divergence between managers' and shareholders' valuations of a component of a compensation scheme. In particular, moral hazard and adverse selection issues cause shareholders to tie