Quarterly Journal of Economics Are Ceos Really Paid like Bureaucrats?*

نویسندگان

  • BRIAN J. HALL
  • JEFFREY B. LIEBMAN
چکیده

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.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Can Bureaucrats Really Be Paid like CEOs? School Administrator Incentives for Anemia Reduction in Rural China

A large literature examines performance pay for managers in the private sector, but little is known about performance pay for managers in public sector bureaucracies. In this paper, we study performance incentives rewarding school administrators for reducing anemia among their students. Randomly assigning 170 schools to three performance incentive levels and two orthogonal sizes of unconditiona...

متن کامل

Are Ceos Really Paid like Bureaucrats?

A common view is that there is little correlation between Žrm performance and CEO pay. Using a new Žfteen-year panel data set of CEOs in the largest, publicly traded U. S. companies, we document a strong relationship between Žrm 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 sho...

متن کامل

Are Bureaucrats Really Paid Like Bureaucrats?∗

Traditionally, bureaucrats are viewed as a stereotypical example of employees with flat pay schedules and low-powered incentive schemes. This paper challenges this view by providing evidence that wages of a particular group of senior bureaucrats city managers are tightly connected to their performance. In particular, salaries of city managers are strongly linked to city growth. Additional tests...

متن کامل

Are Public Sector CEOs Di¤erent? Leadership Wages and Performance in Schools

This paper uses a unique data set to investigate the link between the pay and performance of school principals. It is frequently argued that public sector CEOs are paid like bureaucrats with little reward for good performance. However, this ignores the possibility of implicit labor market incentives. We show that pay is indeed linked to publicly observable performance measures. Moreover poorly ...

متن کامل

Challenges to Globalization: Analyzing the Economics

A solution to get the problem off, have you found it? Really? What kind of solution do you resolve the problem? From what sources? Well, there are so many questions that we utter every day. No matter how you will get the solution, it will mean better. You can take the reference from some books. And the challenges to globalization analyzing the economics is one book that we really recommend you ...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 1998