The price of change: The role of CEO compensation in strategic variation and deviation from industry strategy norms

Authors
Carpenter, MA
Citation
Ma. Carpenter, The price of change: The role of CEO compensation in strategic variation and deviation from industry strategy norms, J MANAG, 26(6), 2000, pp. 1179-1198
Citations number
59
Categorie Soggetti
Management
Journal title
JOURNAL OF MANAGEMENT
ISSN journal
01492063 → ACNP
Volume
26
Issue
6
Year of publication
2000
Pages
1179 - 1198
Database
ISI
SICI code
0149-2063(2000)26:6<1179:TPOCTR>2.0.ZU;2-5
Abstract
This research rests the proposition that changes in CEO pay will be reflect ed in strategic change-viewed as variation in firm strategy and deviation f rom industry strategic norms. Changes in total CEO pay, long-term pay, and long-term pay structure were found to affect strategic change in a sample o f large U.S. firms. However, the effects of pay on change were positive whe n firm performance was low; the relationships were negative among the highe st performing firms. (C) 2000 Elsevier Science Inc. All rights reserved.