Firm Pay Policies and Executive Compensation (Preliminary and Incomplete)
نویسنده
چکیده
Detailed information on how rms structure base salary, bonus payments and total compensation is drawn from a data set of more than 500 rms between 1981-1988. This data is merged with personnel records of the rms top executives to investigate the relationship between executive compensation and rm pay policies. I nd that the rm pay policies have a strong e¤ect on compensation even when controlling other factors that determine pay including individual executive-speci c characteristics, job characteristics and other rm characteristics such as rm size and revenues, pro tability, industry and ownership status. I also nd that these policies have a similar e¤ect on compensation at each level of the hierarchy.
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