Since the last decade, there have been intense debates over whether executive compensation contracts are set optimally for interest alignment between management and shareholders. As Jensen and Murphy (2010) noted, the real problem of compensation is 'not how much you pay, but how'. While there is an agreement that performance-based pay can influence corporate investment decisions, the evidence is less clear on how and to what extent such a link is established. The real interest of this study is to examine the design of compensation contracts that motivates CEOs to make more efficient capital allocation decisions.
If you are interested in researching this topic as part of a Master of Philosophy (Accountancy) and you are applying to commence your degree in Semester 1, 2020 you may be eligible for a School of Accountancy Accelerate Scholarship.
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