July 17: Executive Compensation: A Survey of Theory and Evidence. New survey paper on executive compensation, containing (1) Data on CEO and other top executive pay over time and across firms, including private firms and non-US firms. (2) Critical analysis of three explanations for the drivers of pay: shareholder value maximization (including a simple unifying model), rent extraction, institutional influences. (3) The “effects” of executive pay and challenges in causal identification. (4) Directions for future research.
July 17: Equity Vesting and Investment published in the Review of Financial Studies. CEOs cut investment when their equity vests, due to concerns with the short-term stock price.
June 17: Major revision of Does Improved Information Improve Incentives? (formerly “The Value of Information for Contracting”). Optimal contracting model showing that improved precision of the performance measure may reduce the agent’s incentives, offsetting the benefits of information typically documented in the literature.
December 16: Blockholders: A Survey of Theory and Evidence. Survey paper for the Handbook of the Economics of Corporate Governance on: underlying property rights of public firms and role of blockholders; definition of a blockholder; new evidence on frequency and characteristics of blockholders; simple model unifying theories of voice and exit; review of empirical studies; future research directions.
The Answer to Short-Termism Isn’t Asking Investors to Be Patient (Harvard Business Review)
Response to government’s Green Paper on Corporate Governance
Written evidence on CEO pay, workers on boards, shareholder vs. stakeholder maximisation
Supplementary written evidence: short-term trading, dividends and repurchases are not bad for society; further evidence on workers on boards
Compilation of non-technical, practitioner article on executive pay
Why We Need to Stop Obsessing Over CEO Pay Ratios (Harvard Business Review)
Stop Making CEO Pay A Political Issue (Harvard Business Review)
Performance-Based Pay For Executives Still Works (Harvard Business Review)