compare and contrast the two theories of executive pay: human capital theory and the agency theory....

compare and contrast the two theories of executive pay: human capital theory and the agency theory. discuss/compare the following two points when answering:

1. competitive or nonconpetitive market for executove talent and executive pay

2. negotiation of contracts between executives and shareholders at arm's length or not at arm's length

Solutions

Expert Solution

Two hypotheses of official compensation for execution are

- Principal-specialist model where firms try to plan the most productive pay bundles conceivable so as to pull in, hold, and propel executives.Shareholders choose the compensation structure being the head of the association.

- Managerial force hypothesis where free directorate has significant job in giving fitting official remuneration designs and adjusting the CEO pay to firm execution.

In both model there is competitive market for official ability and official compensation. Shareholders or autonomous chiefs they realize the market is competitive for human asset and on the off chance that they don't pay as needs be, at that point official will scan for different spots.

Exchange of agreements among executives and shareholders are at a manageable distance. The two executives and shareholders are in equivalent balance and free.

PLZ LIKE MY ANS

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Compare and contrast any two of the following learning theories: expectancy theory, social learning theory, reinforcement...

Compare and contrast any two of the following learning theories: expectancy theory, social learning theory, reinforcement theory, information processing theory.

Compare and contrast the different theories of management in healthcare. Is there one theory that is...

Compare and contrast the different theories of management in healthcare. Is there one theory that is better suited than another? Why

Compare and contrast two change theories, and determine which theory makes the most sense for implementing...

Compare and contrast two change theories, and determine which theory makes the most sense for implementing your specific EBP project. Why? Has your mentor used either theory, and to what result? iam writing on prevention of central line assoicated blood stream infection

Compare and contrast two change theories, and determine which theory makes the most sense for implementing...

Compare and contrast two change theories, and determine which theory makes the most sense for implementing your specific Evidence-Based Practice (EBP). Why? Has your mentor used either theory, and to what result?

Compare and contrast in details human capital and signaling models.

Compare and contrast the pay rate and growth of pay for human resource managers and financial...

Compare and contrast the pay rate and growth of pay for human resource managers and financial managers. -200 Words -One or Two Sources

Compare and contrast two theories used for program planning. Which theory best supports your program and...

Compare and contrast two theories used for program planning. Which theory best supports your program and planning project? Why?

Compare and contrast Sorensen’s Comparable worth, Human capital theory, and Kanter’s views (tokenism) about wage gap...

Compare and contrast Sorensen’s Comparable worth, Human capital theory, and Kanter’s views (tokenism) about wage gap between men and women. Explain, in detail, comparable worth. Why does pay gap exist, according to Sorensen? Why there is so much resistance to comparable worth? Do you think that pay equality is possible through comparable worth?

Choose two work motivation theories from the text and compare and contrast these two theories. Explain...

Choose two work motivation theories from the text and compare and contrast these two theories. Explain how each theory is applied to employee motivation. Discuss some of the limitations that are apparent after making these comparisons.

Compare and contrast two theories of personality development in middle age. Are these theories mutually contradictory,...

Compare and contrast two theories of personality development in middle age. Are these theories mutually contradictory, or do they add to and enrich each other? Present each theory in full with related examples, relevant research, etc. After these have been explicitly mapped out, make your comparisons and draw your conclusions.

Subjects