Scholarly edition
CEO Pay with Perks
Abstract
This paper develops an equilibrium matching model for a competitive CEO market in which CEOs’ wage and perks are both endogenously determined by bargaining between firms and CEOs. In stable matching equilibrium, firm size, wage, perks and talent are all positively related. Perks are more sensitive than wage to changes in firm size if there are economies of scale in the cost of providing perks. Productivity-related perks provide common value by …
Authors
Carrothers AG; Han S; Qiu J
Publisher
Elsevier
Publication Date
January 1, 2012
DOI
10.2139/ssrn.2062592