Work

Are CEOs Really Paid Like Bureaucrats?

Year: 1998

Type: article

Abstract: A common view is that there is little correlation between firm performance and CEO pay. Using a new fifteen-year panel data set of CEOs in the largest, publicly traded U. S. companies, we document a strong relationship between firm performance and CEO compensation. This relationship is generated almost entirely by changes in the value of CEO holdings of stock and stock options. In addition, we show that both the level of CEO compensation and the sensitivity of compensation to firm performance have risen dramatically since 1980, largely because of increases in stock option grants.

Source: The Quarterly Journal of Economics

DOI: 10.1162/003355398555702

Authors: B. J. Hall, J. B. Liebman

Institutions: National Bureau of Economic Research, Harvard University

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2891965021

FWCI: 57.28

Cites: 29

Cited by: 1,526

Related to: 10