Christoph Pelger

Nov 20, 2024 | onlinelibrary.wiley.com | Ulrich Schäfer |Christoph Pelger

1 INTRODUCTION Deferred compensation is widely regarded as an instrument to mitigate observed deficiencies in compensation practices (Bhagat & Romano, 2009; Edmans et al., 2017). Imposing vesting periods for cash or equity bonuses and making their vesting contingent on the future performance of a firm can provide long-term incentives for managers and prevent myopic behavior.