Impacts of Top Five Executives’ Compensation on Employee Wages

This paper studies the impacts of incentive compensation to top five executives on employee wages. We employ pay-performance sensitivity measure executive compensation. Using sample during 1992 – 2017, we find that has negative In addition, examine wages in different industries and are more severe technology firms than non-technology firms. Finally, show with higher likely suppress financially safe Our results suggest while management teams compensated as a team average, they isolated individuals other aspects. Furthermore, firm performance may not always improve long run by granting high executives.