Compensation of bank CEOs increases after mergers, suggesting that executives may engage in acquisitions to enjoy size-related personal benefits (Bliss and Rosen, 2001). Alternatively, bank mergers can be viewed as the efficient assignation of merged assets to the managerial team best suited to realize merger gains. Theories of executive compensation based on managerial productivity and optimal...

We present an approach to wireless fair scheduling in a distributed architecture. Our scheme is based on a simple extension of wireline fair scheduling by compensation for lost capacity after the losses occur. In addition, the scheduler provides limited compensation for unused capacity. This provides an incentive for users of the location-dependent wireless channel to optimize their channel usa...

A firm is subject to accident risk, which the manager can mitigate by exerting effort. An agency problem arises because effort is unobservable and the manager has limited liability. The occurrence of accidents is modelled as a Poisson process, whose intensity is controlled by the manager. We use martingale techniques to formulate the manager’s incentive compatibility constraints. The optimal co...

This special report synthesizes the findings of a Health Care Financing Administration grant which allowed the author to analyze hospital finance in six foreign countries and in the United States. The author identified the principal problems facing hospital owners, carriers, and governments in the United States, and he conducted lengthy field work abroad to learn how each country dealt with the...

A firm is subject to accident risk, which the manager can mitigate by exerting effort. An agency problem arises because effort is unobservable and the manager has limited liability. The occurrence of accidents is modelled as a Poisson process, whose intensity is controlled by the manager. We use martingale techniques to formulate the manager’s incentive compatibility constraints and to study th...

As an emerging tool of Management by Objectives, the Objective-Key Results (OKRs) model has been widely used in management practice recent years; however, academic community not reached a consistent conclusion on whether OKRs should be linked to incentive compensation. The author argues benefits linkage terms common ground two concepts, importance employees' sense fairness, and strengthening ef...

The United States (U.S.) Department of Education’s Teacher Incentive Fund provides financial support for local school districts, state agencies, and non-governmental agencies to design and implement performance-based compensation systems that reward teachers and leaders who improve student learning. These policies put pressure on data systems and the social systems of supporting organizations t...

We examine the relationship between derivatives hedging, risk-taking, and managerial compensation incentives from an enterprise risk management perspective in U.S. publicly traded property-liability insurance companies. We find that derivatives usage is negatively related to various risks, supporting the stabilizing effect of derivatives use for hedging purposes. Our evidence also shows that de...