Discretion in Managerial Bonus Pools

1. Auflage 2011
ISBN: 978-1-60198-454-8
Verlag: Now Publishers

Buch, Englisch, Band 17, 84 Seiten, Format (B × H): 156 mm x 234 mm

Reihe: Foundations and Trends® in Accounting

Discretion in Managerial Bonus Pools synthesizes and integrates a growing literature that has emerged over the past 10-15 years on the use of both objective and subjective performance indicators in managerial incentive plans. The authors examine the structure of efficient bonus pools (fixed payment schemes) in the presence of subjective performance indicators. The analysis covers a range of scenarios including single- and multi-agent settings, the interplay of objective and subjective indicators and short-term as opposed to long-term contracting relations. To synthesize the existing research, the authors frame their exposition around five recurring themes which collectively speak to the structure and the efficiency of incentive schemes based on subjective information i. Value of Subjective Performance Indicators. ii. Incremental Agency Cost. iii.Compression of Optimal Incentive Contracts. iv. Optimality of Proper Bonus Pools. v. Value of Multiperiod Contracting

Autoren/Hrsg.

Ederhof, Merle

Rajan, Madhav V.

Reichelstein, Stefan

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Betriebliches Rechnungswesen
• Wirtschaftswissenschaften Betriebswirtschaft Management

Inhaltsverzeichnis

1. Introduction. 2. Incentive Contracting with a Single Agent. 3. Incentive Contracts with Multiple Agents. 4. Multiple Periods. 5. Conclusion. Appendix. References.