Stakeholder management as a predictor of CEO compensation: Main effects and interactions with financial performance

Strategic Management Journal

Volumn 26, Issue 9, 2005, Pages 827-840

  Coombs, Joseph E ^a   Gilley, K Matthew ^b  

^a UNIVERSITY OF RICHMOND   (United States)

^b OKLAHOMA STATE UNIVERSITY   (United States)

Author keywords

CEO compensation; Firm performance; Stakeholders

Indexed keywords

DATABASE SYSTEMS; FINANCE; INDUSTRIAL MANAGEMENT; LAWS AND LEGISLATION; PERFORMANCE; PERSONNEL; SOCIETIES AND INSTITUTIONS; STRATEGIC PLANNING;

FINANCIAL PERFORMANCE; ORGANIZATIONAL EFFECTIVENESS; STAKEHOLDER MANAGEMENT; STRATEGIC MANAGEMENT;

COMPENSATION (PERSONNEL);

EID: 23844507293     PISSN: 01432095     EISSN: None     Source Type: Journal    
DOI: 10.1002/smj.476     Document Type: Article

References (50)

1. Agle BR, Mitchell RK, Sonnenfeld JA. 1999. Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. Academy of Management Journal 42: 507-525.
2. Aiken LS, West SG. 1991. Multiple Regression: Testing and Interpreting Interactions. Sage: Newbury Park, CA.
3. Balkin DA, Markman GD, Gomez-Mejia LR. 2000. Is CEO pay in high-technology firms related to innovation? Academy of Management Journal 43: 1118-1129.
4. Baumol WJ. 1967. Business, Behavior, Value, and Growth. Harcourt, Brace & Court: New York.
5. Belliveau MA, O'Reilly CA, Wade JB. 1996. Social capital at the top: effects of social similarity and status on CEO compensation. Academy of Management Journal 39: 1568-1593.
6. Benner MJ, Tushman M. 2002. Process management and technological innovation: a longitudinal study of the photography and paint industries. Administrative Science Quarterly 47: 676-708.
7. Bergh DD. 1993. Don't 'waste' your time. The effects of time series errors in management research: the case of ownership concentration and research and development spending. Journal of Management 19: 897-914.
8. Berman SL, Wicks AC, Kotha S, Jones TM. 1999. Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance. Academy of Management Journal 42: 488-506.
9. Cameron K. 1986. A study of organizational effectiveness and its predictors. Management Science 32: 87-112.
10. Chamberlain G. 1982. Multivariate regression models for panel data. Journal of Econometrics 18: 5-46.
11. Clarkson MBE. 1995. A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review 20: 92-117.
12. Donaldson T, Preston LE. 1995. The stakeholder theory of the corporation: concepts, evidence, and implications. Academy of Management Review 20: 65-91.
13. Finkelstein S. 1992. Power in top management teams: dimensions, measurement, and validation. Academy of Management Journal 35: 505-538.
14. Finkelstein S, Boyd B. 1998. How much does the CEO matter? The role of managerial discretion in the setting of CEO compensation. Academy of Management Journal 41: 179-199.
15. Freeman RE. 1984. Strategic Management: A Stakeholder Approach. Pitman: Marshfield, MA.
16. Geletkanycz MA, Boyd BK, Finkelstein S. 2001. The strategic value of CEO external directorate networks: implications for CEO compensation. Strategic Management Journal 22(9): 889-898.
17. Gerhart B, Milkovich GT. 1990. Organizational differences in managerial compensation and financial performance. Academy of Management Journal 33: 663-691.
18. Gilley KM, Worrell DL, Davidson WN, El-Jelly A. 2000. Corporate environmental initiatives and anticipated firm performance: the differential effects of process-driven versus product-driven greening initiatives. Journal of Management 26: 1199-1216.
19. Gomez-Mejia LR. 1994. Executive compensation: a reassessment and a future research agenda. In Research in Personnel and Human Resource Management, Ferris G (ed). JAI Press: Greenwich, CT; 161-222.
20. Graves SB, Waddock SA. 1994. Institutional owners and corporate social performance. Academy of Management Journal 37: 1034-1046.
21. Greene W. 1995. LIMDEP Version 7.0 User's Manual. Econometric Software: Plainview, NY.
22. Hambrick DC, Finkelstein S. 1995. The effects of ownership structure on conditions at the top: the case of CEO pay raises. Strategic Management Journal 16(3): 175-193.
23. Harrison JR. 1987. The strategic use of corporate board committees. California Management Review 30(1): 109-126.
24. Henderson AD, Fredrickson JW. 1996. Information-processing demands as a determinant of CEO compensation. Academy of Management Journal 39: 575-606.
25. Hill CWL, Jones TM. 1992. Stakeholder-agency theory. Journal of Management Studies 29: 131-154.
26. Hillman AJ, Keim GD. 2001. Shareholder value, stakeholder management, and social issues: what's the bottom line? Strategic Management Journal 22(2): 125-139.
27. Hillman AJ, Keim GD, Luce RA. 2001. Board composition and stakeholder performance: do stakeholder directors make a difference? Business and Society 40: 295-314.
28. Huth WL, MacDonald DN. 1990. Equity market response to union decertification petitions and elections. Journal of Labor Research 11: 193-201.
29. Jawahar IM, McLaughlin GL. 2001. Toward a descriptive stakeholder theory: an organizational lifecycle approach. Academy of Management Review 26: 397-414.
30. Jensen MC, Meckling WH. 1976. Theory of the firm: managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 3: 305-360.
31. Jensen M, Murphy K. 1990. Performance and top management incentives. Journal of Political Economy 98: 225-264.
32. Johnson RA, Greening DW. 1999. The effects of corporate governance and institutional ownership types on corporate social performance. Academy of Management Journal 42: 564-576.
33. Jones TM. 1995. Instrumental stakeholder theory: a synthesis of ethics and economics. Academy of Management Review 20: 404-437.
34. Jones T, Wicks A. 1999. Convergent stakeholder theory. Academy of Management Review 24: 208-221.
35. Luoma P, Goodstein J. 1999. Stakeholders and corporate boards: Institutional influences on board composition and structure. Academy of Management Journal 42: 553-563.
36. Mathur LK, Mathur I. 2000. An analysis of the wealth effects of green marketing strategies. Journal of Business Research 50: 193-200.
37. McGuire J, Dow S, Argheyd K. 2003. CEO incentives and corporate social performance. Journal of Business Ethics 45: 341-359.
38. McWilliams A, Siegel D. 2001. Corporate social responsibility: a theory of the firm perspective. Academy of Management Review 26: 117-127.
39. Ogden S, Watson R. 1999. Corporate performance and stakeholder management: balancing shareholder and customer interests in the U.K. privatized water industry. Academy of Management Journal 42: 526-538.
40. Richard OC. 2000. Racial diversity, business strategy, and firm performance: a resource-based view. Academy of Management Journal 43: 164-177.
41. Sanders WG. 2001. Behavioral responses of CEOs to stock ownership and stock option pay. Academy of Management Journal 44: 477-492.
42. Sanders WG, Carpenter MA. 1998. Internationalization and firm governance: the roles of CEO compensation, top team composition, and board structure. Academy of Management Journal 41: 158-178.
43. Stone EF, Hollenbeck JR. 1988. Clarifying some controversial issues surrounding statistical procedures for detecting moderator variables: empirical evidence and related matters. Journal of Applied Psychology 74: 3-10.
44. Stroh LK, Brett JM, Baumann JP, Reilly AH. 1996. Agency theory and variable pay compensation strategies. Academy of Management Journal 39: 751-767.
45. Tosi HL, Gomez-Mejia LR. 1989. The decoupling of CEO pay and performance: an agency theory perspective. Administrative Science Quarterly 34: 169-189.
46. Tosi HL, Werner S, Katz JP, Gomez-Mejia LR. 2000. How much does performance matter? A meta-analysis of CEO pay studies. Journal of Management 26: 301-339.
47. Turban DB, Greening DW. 1996. Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal 40: 658-672.
48. Waddock SA, Graves SB. 1997. The corporate social performance-financial performance link. Strategic Management Journal 18(4): 303-319.
49. White H. 1980. A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica 48: 817-838.
50. Zajac EJ, Westphal JD. 1994. The costs and benefits of managerial incentives and monitoring in large U.S. corporations: when is more not better? Strategic Management Journal, Winter Special Issue 15: 121-142.