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The Work-Habit Premium: How Daily Routines Predict CEO Remuneration in the S&P 500

Author

Listed:
  • Kendzia, Michael Jan

    (Zurich University of Applied Sciences (ZHAW))

  • Diaz de la Rosa, Cyrill

    (Zurich University of Applied Sciences (ZHAW))

  • Dela Cruz, Jeremy

    (Zurich University of Applied Sciences (ZHAW))

Abstract

This study explores the relationship between the daily habits of S&P 500 CEOs and their financial remuneration. Using a mixed-method approach, the research analyzes time allocation across work, sleep, and exercise among 22 CEOs from leading publicly listed U.S. corporations. Regression analysis evaluates how these habits correlate with annual salaries, supported by a comparative survey of 89 non-S&P 500 CEOs. Our findings reveal a statistically significant positive association between working hours and base salary, suggesting that longer working days may contribute to financial success. Conversely, no significant links were found between salary and duration of sleep or physical exercise duration. The study highlights that while multiple factors shape executive remuneration, work ethic remains the most predictive. The article provides new empirical evidence for the influence of habitual behavior on executive performance and underscores the relevance of structured daily routines in high-level corporate roles.

Suggested Citation

  • Kendzia, Michael Jan & Diaz de la Rosa, Cyrill & Dela Cruz, Jeremy, 2025. "The Work-Habit Premium: How Daily Routines Predict CEO Remuneration in the S&P 500," IZA Discussion Papers 17929, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17929
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    References listed on IDEAS

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    1. Iain Hay & Jonathan V. Beaverstock (ed.), 2016. "Handbook on Wealth and the Super-Rich," Books, Edward Elgar Publishing, number 15737, August.
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    4. Hodgson, Geoffrey M., 2004. "Reclaiming habit for institutional economics," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 651-660, October.
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    Keywords

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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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