Executive compensation: a calibration approach

Article OPEN
Ivilina Popova; Joseph G. Haubrich;
  • Subject: Calibration · Executive compensation · Principal-agent.
    • jel: jel:G30 | jel:C60 | jel:J33

We use a version of the Grossman and Hart principal-agent model with 10 actions and 10 states to produce quantitative predictions for executive compensation. Performance incentives derived from the model are compared with the performance incentives of 350 firms chosen f... View more
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