search query: @indexterm COMPANY OWNERSHIP / total: 496
reference: 215 / 496
| Author: | Hambrick, D. C. Finkelstein, S. |
| Title: | The effects of ownership structure on conditions at the top: The case of ceo pay raises |
| Journal: | Strategic Management Journal
1995 : MAR, VOL. 16:3, p. 175-193 |
| Index terms: | COMPANY OWNERSHIP INCOMES POLICY MANAGING DIRECTORS |
| Language: | eng |
| Abstract: | We examine how ownership configuration affects the determination of CEO pay raises. Based on a sample of 188 firms over a 5-year period, it was found that pay raises were based on distinctly different factors, depending on the ownership profile of the firm. In management-controlled firms - where no single major owner exits - results suggest an overarching pay philosophy: maximize CEO pay, subject to demonstration of face legitimacy of that pay. In externally- controlled firms - where a major (nonmanager owner exits - results suggest a very different philosophy: minimize CEO pay, subject to the ability to attract/retain satisfactory CEO. |
SCIMA