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Full-Text Articles in Business
Optimality Of The Fastest Available Server Policy, William P. Millhiser, Charu Sinha, Matthew J. Sobel
Optimality Of The Fastest Available Server Policy, William P. Millhiser, Charu Sinha, Matthew J. Sobel
Business Faculty Articles and Research
We give sufficient conditions under which a policy that assigns customers to the Fastest Available Server, labelled FAS, is optimal in queueing models with multiple independent Poisson arrival processes and heterogeneous parallel exponential servers. The criterion is to minimize the long-run average cost per unit time. We obtain results for loss models and for queueing systems with a finite-capacity or infinite-capacity buffer under a head-of-the-line priority scheme. The results depend on cost assumptions, so we analyze the robustness of the cost structure and present counter-examples to illustrate when FAS is not optimal.
Executive Compensation Incentives Contingent On Long-Term Accounting Performance, Zhi Li, Lingling Wang
Executive Compensation Incentives Contingent On Long-Term Accounting Performance, Zhi Li, Lingling Wang
Business Faculty Articles and Research
The percentage of S&P 500 firms using multiyear accounting-based performance (MAP) incentives for CEOs increased from 16.5% in 1996 to 43.3% in 2008. The use and design of MAP incentives depend on the signal quality of accounting versus stock performance, shareholder horizons, strategic imperatives, and board independence. After the technology bubble, option expensing, and the publicity of option backdating, firms increasingly use stock-based MAP plans to replace options, resulting in changes in pay structure, but not in pay level. While firms respond to the evolving contracting environment, they consider firm characteristics and shareholder preferences and do not blindly follow the …