How Sensitive is Executive Compensation to Organizational Size?
Prior empirical research has documented a large cross-sectional correlation between the level of executive pay and firm size. In contrast, this paper examines the association between percentage changes in executive compensation and percentage changes in organizational size. We analyze compensation a...
| Veröffentlicht in: | Strategic Management Journal. - John Wiley & Sons. - 12(1991), 5, Seite 395-402 |
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| Format: | Online-Aufsatz |
| Sprache: | English |
| Veröffentlicht: |
1991
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| Zugriff auf das übergeordnete Werk: | Strategic Management Journal |
| Schlagworte: | Executive Compensation Agency Theory Incentive Problems Organizational Size Salary Structure Economics Business Information science Mathematics |
| Zusammenfassung: | Prior empirical research has documented a large cross-sectional correlation between the level of executive pay and firm size. In contrast, this paper examines the association between percentage changes in executive compensation and percentage changes in organizational size. We analyze compensation and size data for executives at several levels of the corporate hierarchy for a sample of 303 firms. Our results indicate that the correlation between compensation and size is much smaller, although still statistically significant, in changes than in levels. This suggests that changes in an executive's compensation are not primarily driven by changes in organizational size. |
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| ISSN: | 10970266 |