Title: Paying for long-term performance
Description: "Abstract: Firms and regulators around the world are now seeking to ensure that the compensation of public company executives is tied to long-term results to avoid creating incentives for excessive risk-taking.  This paper analyzes how this objective can be best achieved.  Focusing on equity-based compensation, the primary component of executive pay packages, we identify how such compensation could be best structured to tie remuneration to long-term results rather than short-term gains that might turn out to be illusory.  We also analyze how equity compensation could be best designed to prevent the gaming of equity grants at either the front-end or the back-end"--John M. Olin Center for Law, Economics, and Business web site.
Subjects: Financial risk, Risk-taking (Psychology), Mathematical models, Law and legislation, Economic aspects, Salaries, Executives
Places: United States