TY  - RPRT
        AU  - Dupuy, Arnaud
AU  - Kennes, John
AU  - Lyng, Ran Sun
        TI  - The Market for CEOs: Building Legacy and Feeling Empowered Matter
        PY  - 2021/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14803
        UR  - https://www.iza.org/index.php/publications/dp14803
        AB  - We develop a two-sided multidimensional matching model of the market for CEOs that allows for both pecuniary and non-pecuniary (amenity) compensation. The model is estimated by maximum likelihood estimation using matched CEO-firm data from Denmark. We show that CEOs have preferences for building legacy and gaining empowerment. The legacy mechanism explains why there is low mobility in the CEO market, even though firms demand general CEO skills. The empowerment mechanism explains why CEOs are willing to sacrifice significant pecuniary income to manage high equity firms. The overall conclusion is that job amenities matter in the market for CEOs.
        KW  - multidimensional matching
KW  - observed transfers
KW  - structural estimation
KW  - value of job amenities
KW  - taxation
KW  - CEO compensation
KW  - CEO performance
        ER  -