Behavioural Agency Theory

This chapter explains that the conventional design of executive compensation plans, involving high salaries, generous bonuses, and highly leveraged stock programmes is based on an outdated set of assumptions about human behaviour and executive agency

Alexander Pepper

2018

Scholarcy highlights

  • This chapter explains that the conventional design of executive compensation plans, involving high salaries, generous bonuses, and highly leveraged stock programmes is based on an outdated set of assumptions about human behaviour and executive agency
  • It describes a revised theory of agency and a modified design framework for executive pay plans based on developments in behavioural science

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