TY - JOUR
T1 - How much does performance matter? A meta-analysis of CEO pay studies
AU - Tosi, Henry L.
AU - Werner, Steve
AU - Katz, Jeffrey P.
AU - Gomez-Mejia, Luis
PY - 2000
Y1 - 2000
N2 - Through a meta-analytic review of the empirical literature on the determinants of CEO pay, this study tests the hypothesized relationships between firm size, performance, and CEO pay. We show that firm size accounts for more than 40% of the variance in total CEO pay, while firm performance accounts for less than 5% of the variance. We also show that pay sensitivities are relatively similar for both changes in size (5% of the explained variance in pay) and changes in financial performance (4% of the explained variance in pay). The meta-analysis also suggests that moderator variables may play an important role, but we were unable to test for this.
AB - Through a meta-analytic review of the empirical literature on the determinants of CEO pay, this study tests the hypothesized relationships between firm size, performance, and CEO pay. We show that firm size accounts for more than 40% of the variance in total CEO pay, while firm performance accounts for less than 5% of the variance. We also show that pay sensitivities are relatively similar for both changes in size (5% of the explained variance in pay) and changes in financial performance (4% of the explained variance in pay). The meta-analysis also suggests that moderator variables may play an important role, but we were unable to test for this.
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U2 - 10.1177/014920630002600207
DO - 10.1177/014920630002600207
M3 - Article
AN - SCOPUS:0001355948
SN - 0149-2063
VL - 26
SP - 301
EP - 339
JO - Journal of Management
JF - Journal of Management
IS - 2
ER -