Incentive alignment, CEO pay level, and firm performance: A case of "heads I win, tails you lose"?

Human Resource Management

Volumn 40, Issue 2, 2001, Pages 159-170

  Sanders, Wm Gerard ^a  

^a BRIGHAM YOUNG UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0039255536     PISSN: 00904848     EISSN: None     Source Type: Journal    
DOI: 10.1002/hrm.1005     Document Type: Article

References (17)

1. Cowherd, D. M., & and Levine, D. I. (1992). Product quality and pay equity between lower-level employees and top management: An investigation of distributive justice theory. Administrative Science Quarterly, 37, 302-320.
2. Crystal, G. S. (1991). In search of excess: The over-compensation of American executives. New York: Norton.
3. Finkelstein, S., & Hambrick, D. (1996). Strategic leadership: Top executives and their effects on organizations. St. Paul, MN: West Publishing Company.
4. Flannery, T. P., Hofrichter, D. A., & Platten, P. E. (1996). People, Performance, & Pay: Dynamic Compensation for Changing Organizations. New York: Free Press.
5. Greene, W. (1990). Econometric analysis. New York: Macmillan.
6. Hambrick, D. C., & Finkelstein, S. (1995). The effects of ownership structure on conditions at the top: The case of CEO pay raises. Strategic Management Journal, 16, 175-194.
7. Hill, C. W. L., & Phan, P. (1991). CEO tenure as a determinant of CEO pay. Academy of Management Journal, 34, 707-717.
8. Holmstrom, B. (1987). Incentive compensation: Practical design from a theory point of view. In H. R. Nalbantian (Ed.), Incentives, cooperation, and risk sharing: Economic and psychological perspectives on employment contracts. 176-185. Totowa, NJ: Rowan & Littlefield.
9. Jensen, M. C., & Murphy, K. J. (1990). CEO incentives: It's not how much you pay, but how. Harvard Business Review, May-June, 138-153.
10. Kay, I. T. (1992). Value at the Top: Solutions to the Executive Compensation Crises. New York: HarperBusiness.
11. Lambert, R., Larcker, D., & Weigelt, K. (1993). The structure of organizational incentives. Administrative Science Quarterly, 38, 438-461.
12. Lublin, J. (1995). Money talks. The Wall Street Journal, April 12, 1995: R10.
13. Lublin, J. (1996). The great divide: CEO pay keeps soaring - leaving everybody else further and further behind. The Wall Street Journal (Eastern Edition), April 11, 1996: R1.
14. Sanders, W. G. (2001). Behavioral Responses of CEOs to Stock Ownership and Stock Option Pay. Academy of Management Journal, in press.
15. Westphal, J. D., & Zajac, E. J. (1994). Substance and symbolism in CEOs' long-term incentive plans. Administrative Science Quarterly, 39, 367-390.
16. Yermack, D. (1995). Do corporations award CEO stock options effectively? Journal of Financial Economics, 39, 237-269.
17. Zajac, E. J., & Westphal, J. (1994). The costs and benefits of managerial incentives and monitoring in large U.S. corporations: When is more not better? Strategic Management Journal, 15, 121-142.