The Economic Psychology of Incentives: New Design Principles for Executive Pay

by A. Pepper

Overview

This book proposes a revised theory of agency, drawing on ideas from behavioural economics and built on more robust assumptions about human behaviour than the standard principal-agent model. The book proposes new design principles for executive pay, but also explains the difficulties in changing current executive pay practices.

Product Details

ISBN-13:	9781137409232
Publisher:	Palgrave Macmillan UK
Publication date:	07/08/2015
Edition description:	2015
Pages:	181
Product dimensions:	5.51(w) x 8.50(h) x 0.02(d)

About the Author

Alexander Pepper is Professor of Management Practice in the Department of Management at the London School of Economics and Political Science, UK. He was previously a partner at Pricewaterhousecoopers, where he held various senior management roles, including Global Leader of the Human Resource Services consulting practice from 2002-2006.

Table of Contents

1. Introduction 2. Long-term incentive plans 3. Behavioural agency theory 4. Risk, uncertainty and time discounting 5. Intrinsic motivation and the crowding-out conjecture 6. Fairness as a precondition for profit-seeking 7. New design principles for executive pay