Sentence examples for managerial compensation contracts from inspiring English sources

We make a number of novel cross-sectional predictions about the severity of the underinvestment problem and the composition of managerial compensation contracts.

This heterogeneity conditions the strategic decisions that firms make in the product market and can lead to heterogeneity in the design of managerial compensation contracts.

Under the incomplete contract framework, we consider an optimal regulatory policy for motivating bank equity owners and bank managers to restructure the bad loans of their banks in the presence of managerial compensation contracts with stock options.

(2001) discuss the impact of tax deductibility limitations on managerial compensation contracts.41 In their model, the dividend tax rate simply reduces after-tax corporate profits from the shareholders' perspective and does not influence the manager's behavior.

Accounting for such tax features can be important, as prior theoretical literature indicates that severance payments are a critical component of managerial compensation contracts, particularly in turbulent times when CEO turnover decisions occur more frequently.29 Another interesting topic might be divergent tax bases that distort optimal decision making as they create profit shifting incentives.

However, we also find that the stewardship uses of earnings (debt contracts, managerial compensation) and internal uses (in managing own company) rank closely behind the valuation use.

Göx (2008) LEN model, cash flow comprises two uncontrollable random factors How do tax deductibility limits on fixed managerial compensation influence the design of incentive contracts?

Shortening the fuse restricts timing opportunism, but alleviates money-burning incentives only if managerial compensation is sufficiently concavified or the contract stipulates substantial investors' hurdle returns.

We show that the relative seniority of debt and managerial compensation has important implications for the design of remuneration contracts.

Limitations placed on the tax deductibility of managerial compensation can be used by tax authorities to influence the design of compensation contracts.

Furthermore, we illustrate the effect of placing corporate income tax deductibility limitations on managerial compensation which is a frequently discussed legislative instrument to influence the design of compensation contracts.8 The fraction of the agent's compensation that is not corporate tax-deductible is denoted by (kin [0,1]).