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Chief executive compensation: A study of the intersection of markets and political processes
Author(s) -
Finkelstein Sydney,
Hambrick Donald C.
Publication year - 1989
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250100203
Subject(s) - executive compensation , salary , business , compensation (psychology) , sample (material) , test (biology) , accounting , economics , corporate governance , psychology , social psychology , market economy , finance , paleontology , chemistry , chromatography , biology
A model of the determinants of chief executive (CEO) compensation is presented and tested. Based on a sample from the leisure industry, the study finds that CEO pay has complex links to several factors: firm size, complexity, performance, CEO power, board vigilance, and the CEO's human capital. The study includes a separate examination of CEO salary and bonus, as well as a test of pay determination across McEachern's (1975) ownership categories.