Advanced Search
MyIDEAS: Login

Determinants of chief executive officer compensation

Contents:

Author Info

  • John R. Deckop
Registered author(s):

    Abstract

    This study investigates correlates of Chief Executive Officer (CEO) compensation, with particular emphasis on measures of firm performance. An analysis of data from 120 firms in 1977-81 shows that, contrary to the findings of some other studies, CEOs were not given an incentive through compensation to increase the size of the firm at the expense of profit. Rather, CEO compensation was positively related to profit as a percentage of sales. Also, CEOs recruited from outside the firm earned significantly more than internally promoted CEOs, and both of those groups earned significantly more than CEOs who were founders of the firm. The market equity value of the firm and the CEO's age and years of service as a CEO had little effect on compensation. (Abstract courtesy JSTOR.)

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 41 (1988)
    Issue (Month): 2 (January)
    Pages: 215-226

    as in new window
    Handle: RePEc:ilr:articl:v:41:y:1988:i:2:p:215-226

    Contact details of provider:
    Fax: 607-255-8016
    Web page: http://www.ilr.cornell.edu/ilrreview/
    More information through EDIRC

    Order Information:
    Postal: 381 Ives East, Cornell University, Ithaca, NY 14853-3901
    Email:
    Web: http://digitalcommons.ilr.cornell.edu/ilrreview/

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. James Angel & Douglas McCabe, 2008. "The Ethics of Managerial Compensation: The Case of Executive Stock Options," Journal of Business Ethics, Springer, vol. 78(1), pages 225-235, March.
    2. Engesaeth, E.J.P., 2011. "Managerial compensation contracting," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4807459, Tilburg University.
    3. Fatemi, Ali & Desai, Anand S. & Katz, Jeffrey P., 2003. "Wealth creation and managerial pay: MVA and EVA as determinants of executive compensation," Global Finance Journal, Elsevier, vol. 14(2), pages 159-179, July.
    4. Kathy Fogel & Liping Ma & Randall Morck, 2014. "Powerful Independent Directors," NBER Working Papers 19809, National Bureau of Economic Research, Inc.
    5. Geringer, J. Michael & Frayne, Colette A. & Olsen, David, 1998. "Rewarding growth or profit?: Top management team compensation and governance in Japanese MNEs," Journal of International Management, Elsevier, vol. 4(4), pages 289-309, December.
    6. John M. Abowd & David S. Kaplan, 1999. "Executive Compensation: Six Questions That Need Answering," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 145-168, Fall.
    7. Kato, Takao & Hebner, Kevin J., 1997. "Insider trading and executive compensation: Evidence from the U.S. and Japan," International Review of Economics & Finance, Elsevier, vol. 6(3), pages 223-237.
    8. Bowlin, William F., 2004. "Financial analysis of civil reserve air fleet participants using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(3), pages 691-709, May.
    9. Elston, Julie Ann & Goldberg, Lawrence G., 2003. "Executive compensation and agency costs in Germany," Journal of Banking & Finance, Elsevier, vol. 27(7), pages 1391-1410, July.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ilr:articl:v:41:y:1988:i:2:p:215-226. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ILR Review).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.