Abstract
This study examines executive compensation in light of traditional agency theoretic assumptions, but also integrates institutional and environmental arguments in an attempt to understand why CEO compensation varies across industries. The authors find that the effect a CEO has on organizational outcomes varies considerably across industries. The researchers also find that some industries have considerable within-industry differences in CEO discretion on organizational outcomes, such as ROA, annual stock returns and Tobin's Q. In industries where there is a large variance in CEO impact, total CEO compensation tends to be significantly higher. However, we do not find that industry-wide CEO discretion affects contingent pay.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 203-212 |
| Number of pages | 10 |
| Journal | Problems and Perspectives in Management |
| Volume | 12 |
| Issue number | 4 |
| State | Published - 2014 |
| Externally published | Yes |
Keywords
- CEO compensation
- Industry
- Managerial discretion
ASJC Scopus subject areas
- Business and International Management
- General Business, Management and Accounting
- Sociology and Political Science
- Public Administration
- Strategy and Management
- Information Systems and Management
- Law