Working Paper

The Stability of Dividends and Wages: Effects of Competitor Inflexibility

We analyze how industry-wide risks are shared between firms' employees and their owners. Focusing on the electricity industry, we study firms which are subject to similar risks but use different production technologies. We document that firms are...Read more

Daniel A. Rettl
Alex Stomper
Josef Zechner
14 June 2018

The Additional Costs of CEO Compensation: The Effect of Relative Wealth Concerns of Employees

Do employees who compare themselves to the CEO matter for executive compensation? We hypothesize that employees have relative wealth concerns and compare their wage to the CEO’s pay. Using German establishmentlevel wage data, we indeed show that...Read more

Ingolf Dittmann
Christoph Schneider
Yuhao Zhu
17 April 2018

"Since You're So Rich, You Must Be Really Smart": Talent and the Finance Wage Premium

Financial sector wages increased extraordinarily over the last decades. An explanation for this trend is that skill demand rose more in finance than other sectors. We use Swedish administrative data, which include cognitive and non-cognitive...Read more

Michael Böhm
Daniel Metzger
Per Strömberg
20 February 2018

Do Institutional Investors Monitor Their Large vs. Small Investments Differently? Evidence from the Say-on-Pay Vote

Widely-cited theoretical models predict that large shareholders will monitor management, while small shareholders will free-ride. However, we find that institutional investors are particularly likely to oppose management on Say-On-Pay for their...Read more

Miriam Schwartz-Ziv
Russ Wermers
29 January 2018

Why CEO Option Compensation Can be a Bad Option for Shareholders: Evidence from Major Customer Relationships

We study how the existence of important production contracts affects the choice of CEO compensation contracts. We hypothesize that having major customers raises the costs associated with CEO risk-taking incentives and leads to lower option-based...Read more

Claire Yang Liu
Ronald Masulis
Jared Stanfield
22 September 2017