Paul Povel
Institution
University of Houston
PhD Year
1998
Phone
713-743-4759
povel@uh.edu
FTG Membership
Senior Member
Website
https://www.bauer.uh.edu/povel
Featured Work
Jul 8, 2018
Competition for Talent under Performance Manipulation
We study the effects of introducing competition for CEOs, assuming that the talent of
CEOs is not observable and that they can misreport their performance. Without competition
for talent, firms maximize their profits by offering inefficiently low-powered
incentive contracts. Competition for talent removes those inefficiencies, but it leads
to excessively high-powered incentive contracts, causing efficiency losses that can be
more...
