Executive Remuneration and Employee Performance-Related Pay

Tito Boeri is Professor of Economics at Bocconi University, Milan and Scientific Director of the Fondazione Rodolfo Debenedetti (www.frdb.org). His papers have been published in the American Economic Review, the Journal of Economic Perspectives, the Economic Journal, the Journal of the European Economic Association, Economic Policy, the European Economic Review, the Journal of Labour Economics, the Journal of Development Economics and the NBER Macroeconomics Annual. He has published 11 books with Oxford University Press, MIT Press, and Princeton University Press. He is the founder of the economic policy watchdog website www.lavoce.info and the scientific director of the Festival of Economics in Trento.Claudio Lucifora is Professor of Economics at the Università Cattolica in Milan and research fellow at IZA. He has been visiting scholar at the University of Warwick, Université de Paris 2, London School of Economics, Universitat Autonoma Barcelona, Australian National University, and University of New South Wales. He has been elected member of the executive committee and Treasurer of EALE (European Association of Labour Economists). He has published books on low pay employment, the economics of education, and the shadow economy, as well as articles in refereed journals on earnings mobility, wage determination, unemployment, labour market institutions, education, and health.Kevin J. Murphy is the Kenneth L. Trefftzs Chair in Finance at the USC Marshall School of Business, Professor of Business and Law in the USC Law School, and Professor of Economics in the USC Economics Department. He is an internationally known expert on executive compensation, and is the author of nearly 50 articles, cases, books, or book chapters relating to compensation and incentives in organizations. He has have offered testimony relating to executive compensation to the US Congress and has given speeches on compensation and incentives to the Conference Board, the American Compensation Association, and the Board of Governors of the Federal Reserve. Professor Murphy received his M.A. and Ph.D. degrees in Economics from the University of Chicago.

• PART I: THE EXECUTIVE COMPENSATION CONTROVERSY: A TRANSATLANTIC ANALYSIS; PART II: PAYING FOR PERFORMANCE: INCENTIVE PAY SCHEMES AND EMPLOYEES' FINANCIAL PARTICIPATION