Found 4 article(s) for author 'Compensation'

Shared Capitalism: What is it and What Does it Do?

Shared Capitalism: What is it and What Does it Do? Richard Freeman, December 2016, Paper, “We all know that people respond to incentives. Economics 101 teaches that workers put forth greater effort when these efforts are rewarded financially, and top talent tends to gravitate toward jobs and firms where rewards are geared to performance. For the most part, however, the research that’s led us to these conclusions has focused on performance incentives for individual workers, such as piece rates, merit pay, individual commissions, or bonuses.Link

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Empowering Minority Shareholders and Executive Compensation: Evidence from a Natural Experiment

Empowering Minority Shareholders and Executive Compensation: Evidence from a Natural Experiment. Jesse Fried, August 2016, Paper, “We use a recent regulatory change in Israel to examine the efficacy of minority shareholder approval. In 2011, the level of minority shareholder support required for approving related party transactions, including executive compensation paid to controlling shareholders or to their relatives, increased from a third to a majority of the minority votes cast, and a new rule required renewal of this approval every three years. Comparing changes in compensation following approvals before and after the reform, we find that only the new type of approval constrains compensation, and that this effect is present only when the firm does not choose the timing of the vote.Link

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Does Productivity Still Determine Worker Compensation? Domestic and International Evidence

Does Productivity Still Determine Worker Compensation? Domestic and International Evidence. Robert Lawrence, 2016, Book Chapter. “The American dream is that each generation should live twice as well as the previous one, and this requires that incomes rise at an annual rate of around 2 percent per year. At this pace, incomes will double every 35 years. Between 1947 and 1970, average real compensation in the US increased at annual rate of 2.6 percent—a pace that was actually faster than required to achieve the dream. But since 1970, the average real compensation of US workers has grown at less than 1 percent per year, and at that pace it would take almost a lifetime to see incomes double.Link

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Aligning Incentives at Systemically Important Financial Institutions

Aligning Incentives at Systemically Important Financial Institutions. David Scharfstein, John Campbell, March 25, 2013, Paper. “UBS recently announced it would pay part of the bonuses of 6,500 highly compensated employees with bonds that would be forfeited if the bank does not meet its capital requirements. This memo underscores the benefits of contingent deferred compensation and makes recommendations for how such compensation should be structured at systemically important institutions. We also revise our proposal for contingent convertible bonds, explaining how these hybrid bonds…”  Link verified March 25, 2013

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