Chief executive compensation: A study of the intersection of markets and political processes

Sydney Finkelstein, Donald C. Hambrick

Research output: Contribution to journalArticlepeer-review

453 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)121-134
Number of pages14
JournalStrategic Management Journal
Volume10
Issue number2
DOIs
StatePublished - 1989

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

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