Tournament theory-high executive pay is due to moral hazard

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According to tournament theory:

(a) Pay gaps between job positions get larger at successively higher levels in the organizational hierarchy.

(b) High executive pay is due to moral hazard.

(c) People seeking the CEO’s job compete to acquire the right signal about their productivity.

(d) Employee teams perform better when workers get paid based on their team’s performance.

Reference no: EM13740092

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