Thesis: S.M. in Management Studies, Massachusetts Institute of Technology, Sloan School of Management, 2018. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 33). / I study how the compensation structure of top managers from US public companies changes in recent years and the effect of these incentives on firm performance. I first explore the trend of executive compensation structure and performance metrics used in executive compensation over the years. I also examine systematic differences across industries and different firm sizes. Then I analyze the relationship between compensation structure and firm performance. My results suggest that a higher level of incentive-based compensation correlates with higher growth in total shareholder return; particularly for small firms, a higher level of incentive-based compensation correlates with significantly higher total asset growth, sales growth and employment growth as well. To explore whether the level of incentive-based compensation has influence on firm performance, I use propensity score matching to reduce selection bias. My results suggest that the level of incentive-based compensation has no significant influence on firm performance. / by Shuo Zheng. / S.M. in Management Studies
| Identifer | oai:union.ndltd.org:MIT/oai:dspace.mit.edu:1721.1/117918 |
| Date | January 2018 |
| Creators | Zheng, Shuo, S.M. Sloan School of management |
| Contributors | Egor Matveyev., Sloan School of Management., Sloan School of Management. |
| Publisher | Massachusetts Institute of Technology |
| Source Sets | M.I.T. Theses and Dissertation |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 62 pages, application/pdf |
| Rights | MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission., http://dspace.mit.edu/handle/1721.1/7582 |
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