The Effects of Top Management Team Pay and Firm Internationalization on MNC Performance

The Effects of Top Management Team Pay and Firm Internationalization on MNC Performance

We examine relationships among top management team (TMT) compensation, a firm’s degree of internationalization (DOI), and its subsequent levels of market and accounting performance. Consistent with our contingency view of information-processing theory, we find that non-CEO total pay and the use of l...

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Veröffentlicht in:Journal of management 2004-01, Vol.30 (4), p.509-528
Hauptverfasser: Carpenter, Mason A., Sanders, Wm.Gerard
Format: Artikel
Sprache:eng
Schlagworte:
Chief executive officers
Correlation analysis
Differences
Executive compensation
Globalization
Incentive plans
Studies
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Zusammenfassung:We examine relationships among top management team (TMT) compensation, a firm’s degree of internationalization (DOI), and its subsequent levels of market and accounting performance. Consistent with our contingency view of information-processing theory, we find that non-CEO total pay and the use of long-term incentive pay are positively associated with subsequent performance, whereas the CEO–TMT total pay gap has negative effects on firm performance. CEO pay has no relationship with performance and TMT pay effects are much stronger in MNCs with high DOI.
ISSN:0149-2063
1557-1211
DOI:10.1016/j.jm.2004.02.001