Changes in executive compensation following an environmental shift: The role of top management team turnover

Theresa S. Cho, Wei Shen

Research output: Contribution to journalReview articlepeer-review

24 Scopus citations

Abstract

In this study we examine the changes in executive compensation at the top management team (TMT) level following an environmental shift. Using the context of deregulation in the airline industry, we find that: (1) a dramatic environmental change that heightens managerial discretion leads to greater pay level and performance sensitivity of TMT compensation; and (2) the greater the magnitude of turnover among TMT members following the environmental shift, the greater the compensation change.

Original languageEnglish (US)
Pages (from-to)747-754
Number of pages8
JournalStrategic Management Journal
Volume28
Issue number7
DOIs
StatePublished - Jul 1 2007
Externally publishedYes

Keywords

  • Deregulation
  • Executive compensation
  • Top management team
  • Turnover

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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