Is CEO Pay Too High and Are Incentives Too Low? A Wealth-Based Contracting Framework.
提出了一个经济框架，用于判断高管应有多少基于业绩的激励，并阐明激励与薪酬水平及财富的关系，帮助理解激励的利弊。
In the wake of the recent financial crisis, proposals have been put forward to resolve “problems ” with executive pay and incentives. Although these proposals discuss ways firms or regulators might get executives to hold greater incentives, they fail to identify how one should determine whether an executive has enough (or too much) incentives. We lay out an economic framework for thinking about what level of performance-based incentives an executive should have. In doing so, we emphasize how performancebased incentives are linked to executive pay levels, as well as to the level of executives ’ wealth. We also make clear both the benefits and costs of performance-based incentives. Bio We thank Garry Bruton for helpful comments and Rahul Vashishtha for excellent research assistance. We also thank The Wharton School for financial support. In the wake of the recent financial crisis, U.S. executive compensation has, once again, come under fire from regulators, politicians, the financial press, the general public, and some academics.