This study used policy capturing to test the 'figurehead' assertion that ex
ecutive pay level contributes to followers' perceptions of a leader's abili
ty. Findings indicated human capital factors including promotion history, d
egree earned and university prestige all furnished more explanation than pa
y for CEO ratings. Results challenged the underlying logic of figurehead ex
planations for executive compensation to the rank and file. Copyright (C) 2
001 John Wiley & Sons, Ltd.