Is CEO pay in high-technology firms related to innovation?

Authors
Balkin, DB Markman, GD Gomez-Mejia, LR
Citation
Db. Balkin et al., Is CEO pay in high-technology firms related to innovation?, ACAD MGMT J, 43(6), 2000, pp. 1118-1129
Citations number
55
Categorie Soggetti
Management
Journal title
ACADEMY OF MANAGEMENT JOURNAL
ISSN journal
00014273 → ACNP
Volume
43
Issue
6
Year of publication
2000
Pages
1118 - 1129
Database
ISI
SICI code
0001-4273(200012)43:6<1118:ICPIHF>2.0.ZU;2-6
Abstract
This study uses the resource-based view of the firm and agency theory to ex amine the relationship between innovation and CEO pay in 90 high-technology firms. With firm size, performance, and other factors controlled, CEO shor t-term compensation was related to innovation as measured by number of pate nts and R&D spending. The data also suggest a less consistent temporal rela tionship between innovation and long term CEO compensation in the high-tech nology firms. In a control sample of 74 low-technology firms, there was no relationship between innovation and either short- or long-term CEO pay.