Browsing by Author "Tosi, Henry L."
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Item Organizational governance and employee pay: how ownership structure affects the firm's compensation strategy(Strategic Management Journal, 3/4/2005) Werner, Steve; Tosi, Henry L.; Gomez-Mejia, LuisThis research investigated how the ownership structure is related to the firm's overall compensation strategy. The findings extend previous research that focused primarily on CEO compensation strategy. We show that there are significant differences in the compensation practices that apply to all employees as a function of the ownership structure. The results show that for owner‐controlled firms and owner‐managed firms there is significant pay/performance sensitivity for all employees. In management‐controlled firms, changes in pay are related to changes in size of the firm. These findings lead us to conclude that ownership structure not only affects upper management's pay, but also the pay of all employees through substantial differences in the firm's compensation practices. Copyright © 2005 John Wiley & Sons, Ltd.Item Other People's Money: The Effects of Ownership on Compensation Strategy and Managerial Pay(Academy of Management Journal, 12/1/1995) Werner, Steve; Tosi, Henry L.This study analyzes the compensation strategy of firms. We examined differences in the pay and incentives of lower-level managers in firms with different levels of management discretion. We found that firms with higher managerial discretion paid compensation premiums through higher salaries, greater bonuses, and more long-term incentives; however, changes in pay were not related to changes in performance, and high-discretion firms did not perform better than other types of firms.