CEO Compensation in Cooperatives versus Publicly Listed Firms
Speaker
Abstract
| A cooperative differs from a publicly listed enterprise in at least two dimensions. First, it does not have a public listing. Second, a cooperative has to bring the enterprise to value as well as to serve member interests, while a publicly listed enterprise has to do only the former. These differences have an impact on the composition of the performance measure, and therefore the optimal incentive intensity for a CEO. The results regarding the sensitivity of the optimal incentive intensity to the nature of the relationship between the upstream and downstream activities, to additional information, to member size and heterogeneity, and to strategic considerations are formulated. |
| Contact information: |
| Paolo Perego |
