Working Paper

11 September 2020

Are CEOs paid extra for riskier pay packages?

This paper quantifies the cost of CEO incentive compensation by estimating an elasticity of pay to the variance of pay. Using US CEO compensation data and a variety of empirical approaches, we find that CEOs with riskier pay packages are...

Ana M. Albuquerque | Rui Albuquerque | Mary Ellen Carter | Qi (Flora) Dong
03 July 2017

Common Ownership, Competition, and Top Management Incentives

We present a firm-level mechanism through which common ownership can affect product market outcomes consistent with empirical evidence. Our theoretical framework embeds a canonical managerial incentive design problem in a model of...

Miguel Anton | Florian Ederer | Mireia Giné | Martin Schmalz
01 June 2017

What is the Shareholder Wealth Impact of Target CEO Retention in Private Equity Deals?

There is a widespread belief among observers that a lower premium is paid when the target CEO is retained by the acquirer in a private equity deal because the CEO’s potential conflicts of interest leads her to negotiate less...

Leonce Bargeron | Frederik Schlingemann | René Stulz | Chad J. Zutter
01 September 2016

Are CEOs Born Leaders? Lessons from Traits of a Million Individuals

What makes a CEO? Our study combines a near-exhaustive sample of CEOs of Swedish companies with data on their cognitive and non-cognitive ability and height at age 18. On average, CEOs, particularly large-company CEOs, have much higher...

Renee Adams | Matti Keloharju | Samuli Knüpfer
01 August 2015

Mind the gap: The Age Dissimilarity between the Chair and the CEO

We study the relation between the chair of the board of directors and the CEO. We argue that substantial age dissimilarity between the two - giving rise to cognitive conflict - increases board monitoring and firm value for firms with...

Marc Goergen | Peter Limbach | Meik Scholz-Daneshgari
01 April 2012

Generalists versus Specialists: Lifetime Work Experience and CEO Pay

We show that pay is higher for CEOs with general managerial skills gathered during lifetime work experience. We use CEOs’ résumés of S&P 1,500 firms from 1993 through 2007 to construct an index of general skills that are...

Claudia Custodio | Miguel Ferreira | Pedro Matos