IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v26y2005i4p377-384.html
   My bibliography  Save this article

Organizational governance and employee pay: how ownership structure affects the firm's compensation strategy

Author

Listed:
  • Steve Werner
  • Henry L. Tosi
  • Luis Gomez‐Mejia

Abstract

This research investigated how the ownership structure is related to the firm's overall compensation strategy. The findings extend previous research that focused primarily on CEO compensation strategy. We show that there are significant differences in the compensation practices that apply to all employees as a function of the ownership structure. The results show that for owner‐controlled firms and owner‐managed firms there is significant pay/performance sensitivity for all employees. In management‐controlled firms, changes in pay are related to changes in size of the firm. These findings lead us to conclude that ownership structure not only affects upper management's pay, but also the pay of all employees through substantial differences in the firm's compensation practices. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • Steve Werner & Henry L. Tosi & Luis Gomez‐Mejia, 2005. "Organizational governance and employee pay: how ownership structure affects the firm's compensation strategy," Strategic Management Journal, Wiley Blackwell, vol. 26(4), pages 377-384, April.
    • Handle: RePEc:bla:stratm:v:26:y:2005:i:4:p:377-384
    DOI: 10.1002/smj.452
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.452
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.452?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:26:y:2005:i:4:p:377-384. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.