Executive Compensation: Performance versus Personal Characteristics
The determinants of compensation of top-salaried chief executives of US industrial corporations are considered. The emphasis in previous studies of executive compensation was placed upon testing the relative importance of sales and profits as determinants of executive salaries, in an effort to shed...
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Veröffentlicht in: | Southern economic journal 1980-04, Vol.46 (4), p.1060-1068 |
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Hauptverfasser: | , |
Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | The determinants of compensation of top-salaried chief executives of US industrial corporations are considered. The emphasis in previous studies of executive compensation was placed upon testing the relative importance of sales and profits as determinants of executive salaries, in an effort to shed light upon the targets and objectives of modern managers.Additional hypotheses concerning executive compensation are introduced and tested. The role of experience, education, business background, and related characteristics which might be considered by a corporate board of directors attempting to recruit and compensate a chief executive is focused on. The significant influence of experience upon compensation levels is shown by the importance of the age variable. The indirect evidence drawn from the variable measuring years as chief executive suggests that specific ''on-the-job'' training as a chief executive commands a wage premium. Neither education past the baccalaureate degree nor prestigious degrees were indicated to be significantly related to compensation. The overall implication is that a number of considerations in addition to current performance as measured by sales and profits influence current compensation for top executives. |
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ISSN: | 0038-4038 2325-8012 |
DOI: | 10.2307/1057241 |