In this essay we will be dealing with the issue of executive compensation, that is the possible ways executives get paid. We will be analyzing its structure and main components (base salary, annual bonus plans, stock options and other forms of compensation), to then discuss their effects on the CEO’s incentives and to try to find the optimal solution in relation to organizational performances. The whole issue will be also compared to the principal-agent model, in particular we will be focusing on the moral hazard situation, with which it shares the most similarities. In conclusion will be presented a concrete example of the application of the previously discussed principles.
Il seguente elaborato tratterà di executive compensation, ossia le modalità di retribuzione dei dirigenti aziendali. Si analizzeranno la struttura e le componenti principali (base salary, annual bonus plans, stock options e altre forme di compensazione), per poi discutere riguardo gli effetti sugli incentivi del CEO e cercare di determinare la soluzione ottimale relativamente alle performance dell’organizzazione. Verrà fatto inoltre un confronto con il modello del principale agente, in particolar modo ci si concentrerà sulla situazione di moral hazard, con la quale si può riscontrare il maggior numero di somiglianze. Per concludere verrà fornito e commentato un esempio pratico dell’applicazione dei principi discussi in precedenza.
EXECUTIVE COMPENSATION: UNA PANORAMICA SULLA RETRIBUZIONE DEI CEO
LUCCA, GIORGIO
2022/2023
Abstract
In this essay we will be dealing with the issue of executive compensation, that is the possible ways executives get paid. We will be analyzing its structure and main components (base salary, annual bonus plans, stock options and other forms of compensation), to then discuss their effects on the CEO’s incentives and to try to find the optimal solution in relation to organizational performances. The whole issue will be also compared to the principal-agent model, in particular we will be focusing on the moral hazard situation, with which it shares the most similarities. In conclusion will be presented a concrete example of the application of the previously discussed principles.File | Dimensione | Formato | |
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https://hdl.handle.net/20.500.12608/53616