Abstract
Two recent meta-analyses have concluded that there is not a meaningful relationship between CEO firm specific wealth generation and firm performance. This has been interpreted as showing the frailty of agency theory predictions at the CEO level. Using a large, longitudinal sample (substantially larger than the combined samples in the meta-analyses), and a more complete measurement of CEO firm specific wealth generation, we find a substantial positive relationship between CEO firm specific wealth and shareholder firm specific wealth creation. We also evaluate the specific components of CEO compensation and their relationship with firm performance to demonstrate why previous studies have found a weaker relationship. We then conclude with a discussion of the potential impact of the magnitude of these relationships in real dollar terms.
| Original language | English (US) |
|---|---|
| Journal | Academy of Management Annual Meeting Proceedings |
| Volume | 2006 |
| Issue number | 1 |
| DOIs | |
| State | Published - 2006 |
| Externally published | Yes |
| Event | 66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA, United States Duration: Aug 11 2006 → Aug 16 2006 |
Keywords
- CEO
- Compensation
- Performance
ASJC Scopus subject areas
- Management Information Systems
- Management of Technology and Innovation