Risk and the CEO Market: Why Do Some Large Firms Hire Highly-Paid, Low-Talent CEOs?
---- Acknowledgements ----
We thank Chris Armstrong, Karthik Balakrishnan, Philip Bond, Ingolf Dittmann, Vincent Glode, Todd Gormley, Holger Mueller, Derek Neal, Greg Nini, Gustav Sigurdsson, Luke Taylor and seminar participants at Chicago, LBS, NYU, Penn State, Wharton and the Theory Conference on Corporate Finance and Financial Markets for valued input, and Qi Liu for research assistance. We are grateful to Ingolf Dittmann for generously sharing his data on CEO non-firm wealth. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.