Keeping the Board in the Dark: CEO Compensation and Entrenchment

We study a model in which a CEO can entrench himself by hiding information from the board that would allow the board to conclude that he should be replaced. Assuming that even diligent monitoring by the board cannot fully overcome the information asymmetry visà- vis the CEO, we ask if there is a role for CEO compensation to mitigate the inefficiency. Our analysis points to a novel argument for high-powered, non-linear CEO compensation such as bonus pay or stock options. By shifting the CEO’s compensation into states where the firm’s value is highest, a high-powered compensation scheme makes it as unattractive as possible for the CEO to entrench himself when he expects that the firm’s future value under his management and strategy is low. This, in turn, minimizes the severance pay needed to induce the CEO not to entrench himself, thereby minimizing the CEO’s informational rents. Amongst other things, our model suggests how deregulation and technological changes in the 1980s and 1990s might have contributed to the rise in CEO pay and turnover over the same period

Historical Biogeography Of The North American Glacier Ice Worm, Mesenchytraeus Solifugus (annelida: Oligochaeta: Enchytraeidae)

North American ice worms are the largest glacially-obligate metazoans, inhabiting coastal, temperate glaciers between southcentral Alaska and Oregon. We have collected ice worm specimens from 10 new populations, completing a broad survey throughout their geographic range. Phylogenetic analyses of 87 individuals using fragments of nuclear 18S rRNA, and mitochondrial 12S rRNA and cyctochrome c oxidase subunit 1 (CO1) identified 18 CO1 haplotypes with divergence values up to similar to 10%. Phylogeographic interpretations suggest a St. Elias Range, Alaskan ancestry from an aquatic mesenchytraeid oligochaete during the early-Pliocene. A gradual, northward expansion by active dispersal from the central St. Elias clade characterizes a northern clade that is confined to Alaska (with one exception on Vancouver Island, British Columbia), while a distinct southern clade representing worms from British Columbia, Washington and Oregon was likely founded by a passive dispersal event originating from a northern ancestor. The geographic boundary between central and southern clades coincides with an ice worm distribution gap located in southern Alaska, which appears to have restricted active gene flow throughout the species\u27 evolutionary history

Declining growth of deciduous shrubs in the warming climate of continental western Greenland

Abstract Observational and experimental studies have generally shown that warming is associated with greater growth and abundance of deciduous shrubs in arctic ecosystems. It is uncertain, however, if this trend will persist in the future. Our study examined growth responses of deciduous shrubs to climate change over the late 20th and early 21st centuries near Kangerlussuaq in western Greenland. We combined shrub dendrochronology, stable isotope analysis and weekly measurements of leaf gas exchange to examine the drivers of secondary growth in two widespread and dominant deciduous shrub species: Salix glauca and Betula nana. Betula showed a dramatic growth decline beginning in the early 1990s, when correlations between growing season air temperature and growth shifted from neutral to strongly negative. Salix also showed a growth decline, but it began slightly later and was more pronounced among older stems. May–August mean air temperature of c. 7°C appeared to be an important threshold. Carbon isotope discrimination (∆¹³C) in α-cellulose of Salix growth rings declined strongly during the period of reduced growth, suggesting drought-induced stomatal closure as a possible cause. Leaf gas exchange of Salix was also highly sensitive to seasonal variation in moisture availability. Betula growth declined more dramatically than Salix, but leaf gas exchange was less sensitive to moisture availability and there was less evidence of a ∆¹³C trend. We hypothesize that the dramatic Betula growth decline might reflect the combined effects of increasing moisture limitation, repeated defoliation during recent moth outbreaks and greater browsing by a growing muskoxen population. Synthesis. Our findings contrast with widespread observations of increasing shrub growth in the Arctic and instead point to a potential decline in the flux of carbon into a pool with a long mean residence time (wood). While our study area is warmer and drier than much of the Arctic, our results may serve as an early indicator of potential effects of rising temperature in other arctic ecosystems