Relative Performance Evaluation for Chief Executive Officers
Bibliographic Data
| ID | 3384672 |
|---|---|
| Authors | Robert S Gibbons (National Bureau of Economic Research), Robert Gibbons (0000-0001-6765-3039), Kevin J Murphy (0000-0001-8982-0213, University of Southern California) |
| Year | 1990 |
| Volume | 43 |
| Issue | 3 |
| Pages | 30-S-51-S |
| Publication date | 1990-04-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Industrial and Labor Relations Review (JOURNAL) |
| Journal identifiers | ISSN: 0019-7939 • E-ISSN: 2162-271X |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/001979399004300303 |
| ISBN | 9793990043003 |
| Language | EN |
| Citations received | 15 |
| References cited | 18 |
Relative performance evaluation (RPE) provides employees with an incentive to perform well while insulating their compensation from shocks that also affect the performances of other workers in the same firm, industry, or market. This paper reviews the benefits and costs of RPE and tests for the presence of RPE in the compensation contracts of chief executive officers (CEOs) using data on 1,668 CEOs from 1,049 corporations from 1974 to 1986. The results, in contrast to the findings of previous research, strongly support the hypothesis that RPE is used in compensation and retention decisions affecting CEOs: the revision in a CEO's pay and the probability that a CEO remains in his position for the following year are positively and significantly related to firm performance, but are negatively and significantly related to industry and market performance
Business · Ceteris paribus · Economics · Externality · Incentive · Industrial organization · Labour economics · Microeconomics · Production (economics) · Test (biology) · Accounting and Organizational Management · Auditing, Earnings Management, Governance · Corporate Finance and Governance
High Wage Workers and High Wage Firms
The Provision of Incentives in Firms
Examining the Impact of Relative Performance Information on Citizen Satisfaction
Relative Performance Goals and Management Earnings Guidance
The distinct effects of information technologies and communication technologies on skill demand
Incitations Manageriales Dans Les Entreprises Publiques
The effect of wage subsidies on piece rate workers
The Dependence of pay—Performance Sensitivity on the Size of the Firm
Chief Executive Officer Remuneration in Britain
Adverse Specialization
Performance payments
Curbing the Credit Cycle
Relative Performance Evaluation Contracts and Asset Market Equilibrium
Principals as Agents? Investigating Accountability in the Compensation and Performance of School Principals
| Unique citing works | 14 |
|---|---|
| Citations per year | 0,42 |
| Citation span | 1990 - 2025 (36) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 15 |