TY  - RPRT
        AU  - Grund, Christian
AU  - Kräkel, Matthias
        TI  - Bonus Payments, Hierarchy Levels and Tenure: Theoretical Considerations and Empirical Evidence
        PY  - 2010/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5284
        UR  - https://www.iza.org/index.php/publications/dp5284
        AB  - Using data on executive compensation for the German chemical industry, we investigate the relevance of two theoretical approaches that focus on bonuses as part of a long term wage policy of a firm. The first approach argues that explicit bonuses serve as substitutes for implicit career concerns. The second approach claims that bonuses are used as complements to an executive's internal career. Our data show that bonus payments are mostly prevalent among senior executives at higher hierarchy levels and rather for management jobs than for jobs in research and development. This is true for the whole chemical sector as well as for single large corporations. The findings indicate that the two theoretical views are not mutually exclusive, but are both relevant in practice.
        KW  - tenure
KW  - hierarchy
KW  - chemical sector
KW  - bonus payments
KW  - wage policy
        ER  -