Labor Unemployment Risk and CEO Incentive Compensation

The authors thank the editor, an anonymous associate editor, and two anonymous reviewers for very helpful comments. The authors also thank Ashwini Agrawal, Julian Atanassov, Effi Benmelech, Jonathan Berk, Vicente Cunat, Carola Frydman (discussant), Eitan Goldman, Luigi Guiso, Nandini Gupta, Isaac Hacamo, Yuhchang Hwang, Chang-Mo Kang (discussant), Olga Kuzmina, David Matsa, Daniel Metzger (discussant), Claudio Michelacci, Kevin Murphy, Marco Pagano, Jillian Popadak, Uday Rajan, Mandy Tham (discussant), Alminas Zaldokas (discussant), Josef Zechner, and participants to seminars at the Cheung Kong Graduate School of Business, China Europe International Business School, Chinese University of Hong Kong (Shenzhen), Einaudi Institute for Economics and Finance, Fudan University, Indiana University, Shanghai University of Finance and Economics, University of Cologne, University of Naples Federico II, and University of Nebraska at Lincoln and the 2016 American Finance Association Annual Meeting, Australasian Finance and Banking Conference, 2015 China International Conference in Finance, Centre for Studies in Economics and Finance (CSEF)–Innocenzo Gasparini Institute for Economic Research (IGIER) Capri Conference, European Finance Association Annual Meeting (Vienna), and Securities and Financial Markets Conference.