Other People's Money: The Effects of Ownership on Compensation Strategy and Managerial Pay
Date
12/1/1995
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Academy of Management Journal
Abstract
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.
Description
Keywords
Compensation management, Executive compensation, Pensions, Xecutives, Wages, Job performance, Incentives in industry, Labor costs, Organizational sociology, Personnel management
Citation
Copyright 1995 Academy of Management Journal. Recommended citation: Werner, S., and Tosi, H.L. 1995. Other People's Money: The Effects of Ownership on Compensation Strategy and Managerial Pay. Academy of Management Journal, 38(6): 1672-1691. DOI: 10.5465/256849 URL: https://journals.aom.org/doi/pdf/10.5465/256849 Reproduced in accordance with the original publisher’s licensing terms and with permission from the author(s).