On the valuation and incentive effects of executive cash bonus contracts

Executive compensation packages are often valued in an inconsistent manner: while employee stock options (ESOs) are typically valued ex-ante, cash bonuses are valued ex-post. This renders the existing valuation models of employee compensation packages theoretically unsatisfactory and, potentially, empirically distortive. In this paper, we propose an option-based framework for ex-ante valuation of cash bonus contracts. After obtaining closed-form expressions for ex-ante values of several frequently used types of bonus contracts, we utilize them to explore the e¤ects that the shape of a bonus contract has on the executive s attitude toward risk-taking. We, also, study pay-performance sensitivity of such contracts. We show that the terms of a bonus contract can dramatically impact both risk-taking behavior as well as pay-performance incentives. Several testable predictions are made, and venues of future research outlined.

Executive Order Number Six, February 21, 2008

Establishes a Green Government Initiative for the State of Iowa.

Generalized canonical correlation analysis of matrices with different row and column orders

A Method is offered that makes it possible to apply generalized canonicalcorrelations analysis (CANCOR) to two or more matrices of different row and column order. The new method optimizes the generalized canonical correlationanalysis objective by considering only the observed values. This is achieved byemploying selection matrices. We present and discuss fit measures to assessthe quality of the solutions. In a simulation study we assess the performance of our new method and compare it to an existing procedure called GENCOM,proposed by Green and Carroll. We find that our new method outperforms the GENCOM algorithm both with respect to model fit and recovery of the truestructure. Moreover, as our new method does not require any type of iteration itis easier to implement and requires less computation. We illustrate the methodby means of an example concerning the relative positions of the political parties inthe Netherlands based on provincial data.

Executive Order Number Seven, June 27, 2008

This Executive Order establishes an Iowa Task Force to Rebuild Iowa, after the storms and flood in May and June of 2008.

Executive Order Number Eight, July 16, 2008

This Executive Order establishes an Independent Contractor Reform Task Force.

Executive Order Number Nine, November 7, 2008

This Executive Order directs IFA to administer the allocation of additional tax-exempt bonding authority provided by the Disaster Relief Act, develop administrative rules to implement the allocation of this additional tax-exempt bonding authority, track the allocation of the additional tax-exempt bonding authority to ensure compliance with all applicable federal law, and provide all necessary reports to the IRS.

Executive Order Number Ten, December 22, 2008

This Executive Order aids the Governor to meet his Constitutional obligation to balance the state budget, announcing that he would order a 1.5 percent across-the-board reduction in state expenditures for the current fiscal year.

Executive Order Number Eleven, February 17, 2009

This Executive Order creates a task force on dependent care.

Executive Order Number Twelve, April 14, 2009

This Executive Order made the creation of the Iowa Accountability and Transparency Board and the report of the State of Iowa's efforts to implement the AARA

Executive Order Number Thirteen, May 26, 2009

This Executive Order expects the State government expense reimbursements will be properly accounted for.

The semi-presidential system of Cape Verde: the relationship between the executive and the legislative powers = O sistema semi-presidencialista caboverdiano: a relação entre os poderes executivo e legislativo

e article analyses the relationship established between the executive and legislative powers in the Cape Verdean government system where researchers seek to understand it, taking into account their theoretical and constitutional setting practice. It should be noted the prominence of the debate and studies undertaken to understand how the scienti c academy seeks to eradicate this problem. Two issues are relevant in this debate: the rst reporting to the theoretical and constitutional con guration of Cape Verdean government system and the other to its policy and legislative practice. Keywords: Cape Verde. Semi-presidential System. Systems of Government. Legislative and Executive Powers.

Executive Order Number Fourteen, June 22, 2009

This Executive Order expects the State government to facilitate the effective and efficient delivery of services to constituents, governments ought to partner and and coordinate with non-profit community organizations.

Executive Order Number Fifteen, July 15, 2009

This Executive Order expects the State government to help more than 5,800 offenders released to Iowa communities each year, affecting public safety, public health, economic and community well-being and family relationships. Offenders re-entry initiatives involve collaborative partnerships amongst corrections, other agencies and the community.

Executive Order Number Sixteen, August 20, 2009

This Executive Order expects the State government to envision an economic future for the State of Iowa in which its citizens will leak the nation toward the clean, safe, unlimited, efficient job producing prosperity-inducing and environmentally friendly energies of the 21st Century (sometimes referred to as a "Green Economy').