Fox School of BusinessIdea Marketplace

Performance Measures and Executive Compensation: Does R&D Investment Matter?

March 27th, 2013

Posted in:

The intensity of R&D increases the complexity of executives’ jobs; therefore, the marginal return on ability should be higher in R&D intensive firms. In particular, being knowledgeable in the field of technology is helpful in determining long-term strategy, competing with competitors, managing the R&D labor force, and protecting intangible assets. If CEO ability should increases with R&D intensity, how can we best design incentive contracts?

See All Idea Marketplace Posts