University of Southern California

Kevin Murphy
Kenneth L. Trefftzs Chair in Finance and Professor of Finance and Business Economics

USC Marshall School of Business
Los Angeles, CA 90089-0808

Phone: 
213-740-6553
Education: 
PhD, MA, University of Chicago; BA, UCLA

Overview

Kevin J. Murphy is an internationally known expert on executive compensation, and is the author of more than forty articles, cases, books, or book chapters relating to compensation and incentives in organizations. Results from his research on executive compensation have appeared in the popular, business and professional press. He is associate editor for the Journal of Financial Economics and Journal of Corporate Finance. From 2004 to 2007, he served as Vice Dean for Faculty and Academic Affairs at the Marshall School. Before joining USC, Professor Murphy was on the faculty of the University of Rochester and Harvard Business School.

Research

Murphy, K. J. (2013) "Regulating Banking Bonuses in the European Union: A Case Study in Unintended Consequences," European Financial Management, 19 (4), 631-657.
Murphy, K. J., "Executive Compensation: Where we are, and how we got there," in Constantinides, G., Harris, M., and Stulz, R., eds., Handbook of the Economics of Finance, Elsevier Science North Holland, Elsevier 2013.
Fernandes, N., Ferreira, M., Matos, P., and Murphy, K. J. (2013) "Are US CEOs Paid More? New International Evidence," Review of Financial Studies, 26 (2), 323-367.
Conyon, M., Fernandes, N., Ferreira, M., Matos, P., and Murphy, K. J., "The Executive Compensation Controversy: A Transatlantic Analysis," in Boeri, T., Lucifora, C., and Murphy, K., eds., Executive Remuneration and Employee Performance-Related Pay: A Transatlantic Perspective, Oxford University Press, Oxford 2013.
Boeri, T., Lucifora, C., and Murphy, K. J., Executive Remuneration and Employee Performance-Related Pay: A Transatlantic Perspective, Oxford University Press, Oxford 2013.
Murphy, K. J., "Pay, Politics, and the Financial Crisis," in Blinder, A., Lo, A., and Solow, R., eds., Rethinking the Financial Crisis, Russell Sage Foundation, New York, NY 2012.
Murphy, K. J., "The Politics of Pay: A Legislative History of Executive Compensation," in Hill, J., and Thomas, R., eds., The Research Handbook on Executive Pay, Edward Elgar, Cheltenham 2012.
Murphy, K. J. (2012) "CEO Bonus Plans and How to Fix Them,".
Baker, G. P., Gibbons, R., and Murphy, K. J. (2011) "Relational Adaptation,".
Murphy, K. J., and Sandino, T. (2010) "Executive Pay and "Independent" Compensation Consultants. Journal of Accounting and Economics 49 (3).," Journal of Accounting and Economics, 49, 147-262.
Jensen, M. C., Murphy, K. J., and Wruck, E. G., CEO Pay and what to do about it: Restoring integrity into executive compensation and capital-market relations, Harvard Business School Press 2010.
Murphy, K. J., and Zabojnik, J. (2010) "Managerial Capital and the Market for CEOs,".
Murphy, K. J. (2009) "Compensation Structure and Systemic Risk,".
Baker, G. P., Gibbons, R., and Murphy, K. J. (2008) "Strategic Alliances: Bridges Between 'Islands of Conscious Power'," Journal of the Japanese and International Economies, 22 (2), 146-163.
Lowry, M., and Murphy, K. J. (2007) "Executive Stock Options and IPO Underpricing," Journal of Financial Economics, 85 (1), 39-65.
Murphy, K. J., and Oyer, P. (2004) "Discretion in Executive Incentive Contracts," University of Southern California.
Hall, B. J., and Murphy, K. J. (2003) "The Trouble with Stock Options," Journal of Economic Perspectives, 17 (3), 49-70.
Murphy, K. J. (2003) "Explaining Executive Compensation: Managerial Power versus the Perceived Cost of Stock Options," University of Chicago Law Review, 69 (3), 847-869.
Murphy, K. J. (2003) "Stock-Based Pay in New Economy Firms," Journal of Accounting and Economics, 34, 129-147.
Hall, B. J., and Murphy, K. J. (2002) "Expensing will improve compensation decisions," Boston Globe.
Murphy, K. J., Gibbons, R., and Baker, G. (2002) "Relational Contracts and the Theory of the Firm," Quarterly Journal of Economics, 117, 39-84.
Murphy, K. J., and Hall, B. J. (2002) "Stock Options for Undiversified Executives," Journal of Accounting and Economics, 33 (1), 3-42.
Murphy, K. J., and Conyon, M. J., "Stock-based executive compensation," in McCahery, J., Moerland, P., and Renneboog, L., eds., Corporate Governance Regimes: Convergence and Diversity, Oxford University Press 2002.
Baker, G., Gibbons, R., and Murphy, K. J. (2001) "Bringing the Market Inside the Firm," American Economic Review Papers and Proceedings, 92 (2), 212-18.
Murphy, K. J., and Hall, B. J. (2001) "Option Value Does Not Equal Option Cost," WorldatWork Journal, 10 (2).
Murphy, K. J. (2000) "Performance Standards in Incentive Contracts," Journal of Accounting and Economics, 30 (3), 245-78.
Conyon, M. J., and Murphy, K. J. (2000) "The Prince and the Pauper? CEO Pay in the US and UK," Economic Journal, 110, F640-71.
Hall, B. J., and Murphy, K. J. (2000) "Optimal Exercise Prices for Executive Stock Options," American Economics Review Papers and Proceedings, 90 (2), 209-214.
Baker, G., Gibbons, R., and Murphy, K. J. (1999) "Informal Authority in Organizations," Journal of Law, Economics, and Organizations, 15 (1), 56-73.
Hallock, K. F., and Murphy, K. J., The Economics of Executive Compensation, Edward Elgar Publishing, Cheltenham 1999.
Murphy, K. J., "Executive Compensation," in Ashenfelter, O., and Card, D., eds., Handbook of Labor Economics, Elsevier Science North Holland 1999.
Baker, G., Jensen, M. C., and Murphy, K. J. (1998) "Compensation and Incentives: Practice vs. Theory," Journal of Finance, 43 (3), 593-616.
Murphy, K. J. (1998) "Executive Stock Options: An Economist's Perspective," American Compensation Association.
Murphy, K. J. (1997) "Executive Compensation and the Modern Industrial Revolution," International Journal of Industrial Organization, 15 (4), 417-25.
Murphy, K. J. (1997) "Disney Offers a Model for Executive Compensation," Los Angeles Business Journal.
Murphy, K. J. (1997) "CEO Pay and Downsizing: The Social Consequences," American Compensation Association.
Murphy, K. J. (1996) "Reporting Choice and the 1992 Proxy Disclosure Rules," Journal of Accounting, Auditing, and Finance, 11 (3), 497-515.
Dial, J., and Murphy, K. J. (1995) "Incentives, Downsizing, and Value Creation at General Dynamics," Journal of Financial Economics, 37 (3), 261-314.
Murphy, K. J. (1995) "Politics, Economics, and Executive Compensation," University of Cincinnati Law Review, 63 (2), 713-748.
Baker, G., Gibbons, R., and Murphy, K. J. (1994) "Subjective Performance Measures in Optimal Incentive Contracts," Quarterly Journal of Economics, 109 (4), 1125-56.
Jensen, M. C., and Murphy, K. J. (1994) "Compensation at Lexerd Systems," Harvard Business School Press (494-066).
Murphy, K. J. (1993) "Executive Compensation in Corporate America 1993," United Shareholders Association.
Murphy, K. J., and Dial, J. (1993) "Compensation and Strategy and General Dynamics (A) , (B)," Harvard Business School Press (9-494-048, 9-494-049).
Murphy, K. J., and Zimmerman, J. L. (1993) "Financial Performance Surrounding CEO Turnover," Journal of Accounting and Economics, 16, 273-315.
Murphy, K. J. (1992) "Executive Compensation in Corporate America 1992," United Shareholders Association.
Gibbons, R., and Murphy, K. J. (1992) "Does Executive Compensation Affect Investment?," Journal of Applied Corporate Finance, 5 (2).
Gibbons, R., and Murphy, K. J. (1992) "Optimal Incentive Contracts in the Presence of Career Concerns: Theory and Evidence," Journal of Political Economy, 100 (3), 468-505.
Murphy, K. J., Bruns, Jr., W., eds. Performance Measurement and Appraisal: Motivating Managers to Identify and Reward Performance, Harvard Business School Press, Boston 1992.
Murphy, K. J. (1991) "Merck & Co., Inc. (A), (B), (C)," Harvard Business School Press (9-491-005, 9-491-006, 9-491-007).
Murphy, K. J., and Jensen, M. C. (1990) "A New Survey of Executive Compensation: Full Survey and Technical Appendix to 'CEO Incentives - It's Not How Much You Pay but How," Simon School of Business, University of Rochester.
Jensen, M. C., and Murphy, K. J. (1990) "CEO Incentives: It's Not How Much You Pay, But How," Harvard Business Review.
Jensen, M. C., and Murphy, K. J. (1990) "Performance Pay and Top-Management Incentives," Journal of Political Economy, 98 (2), 225-64.
Gibbons, R., and Murphy, K. J. (1990) "Relative Performance Evaluation for Chief Executive Officers," Industrial and Labor Relations Review, 43 (3), 30S-51S.
Murphy, K. J., "The Control and Performance of State-Owned Enterprises: Comment," in MacAvoy, P., Stanbury, W., Yarrow, G., and Zeckhauser, R., eds., Privatization and State-Owned Enterprises, Kluwer Academic 1989.
Murphy, K. J. (1987) "Executive Compensation in Regulated Firms," William E. Simon Graduate School of Business Administration.
Murphy, K. J. (1986) "Incentives, Learning, and Compensation: A Theoretical and Empirical Investigation of Managerial Labor Contracts," Rand Journal of Economics, 17 (1), 59-76.
Murphy, K. J. (1986) "Top Executives Are Worth Every Nickel They Get," Harvard Business Review, 64 (2).
Murphy, K. J. (1985) "Corporate Performance and Managerial Remuneration: An Empirical Investigation," Journal of Accounting and Economics, 7, 11-42.
Murphy, K. J. (1985) "Is Executive Compensation Related to Company Performance?," Rochester Management Review.
Jensen, M. C., and Murphy, K. J. (1984) "Beware the Self-Serving Critics," New York Times.