• How important are risk-taking incentives in executive compensation? 

      Dittmann, Ingolf; Yu, Ko-Chia; Zhang, Danielle (Journal article; Peer reviewed, 2017)
      We consider a model in which shareholders provide a risk-averse CEO with risk-taking incentives in addition to effort incentives. We show that the optimal contract protects the CEO from losses for bad outcomes and is convex ...