Firm Performance Pay as Insurance against Promotion Risk
研究了非高管员工基于企业绩效的薪酬为何普遍存在，提出这是对晋升风险的保险，模型解释了绩效归属和股权薪酬高估等现象。
ABSTRACT The prevalence of pay based on risky firm outcomes for nonexecutive workers presents a puzzling departure from conventional contract theory, which predicts insurance provision by the firm. When workers at the same firm compete against each other for promotions, the optimal contract features pay based on firm outcomes as insurance against promotion risk. The model's predictions are consistent with many observed phenomena, such as performance‐based vesting and overvaluation of equity pay by nonexecutive workers. It also generates novel predictions linking a firm's hierarchy to its workers' pay structure.