CEO incentives and firm size

被引：201
|
作者：
Baker, GP
Hall, BJ [1 ]
机构：
[1] Harvard Univ, Cambridge, MA 02138 USA
[2] Natl Bur Econ Res, Cambridge, MA 02138 USA
来源：
JOURNAL OF LABOR ECONOMICS | 2004年 / 22卷 / 04期
关键词：
D O I：
10.1086/423154
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We develop a model that clarifies how to measure CEO incentive strength and how to reconcile the enormous differences in pay sensitivities between executives in large and small firms. The crucial parameter is shown to be the elasticity of CEO productivity with respect to firm size. We find that CEO marginal products rise significantly with firm size (confirming Rosen's conjecture that CEOs of large firms have a "chain letter" effect on firm performance), and overall CEO incentives are roughly constant, or decline slightly, with firm size. We employ a multitask model to discuss implications for the design of control systems.
引用
收藏
页码：767 / 798
页数：32
相关论文
共 50 条
  • [1] The impact of incentives on CEO compensation and firm performance
    Mahmoud M. Nourayi
    Sudha Krishnan
    [J]. Rivista Internazionale di Scienze Economiche e Commerciali, 2006, 53 (3): : 402 - 420
  • [2] Do CEO compensation incentives affect firm innovation?
    Sheikh, Shahbaz
    [J]. REVIEW OF ACCOUNTING AND FINANCE, 2012, 11 (01) : 4 - +
  • [3] CEO Personal Wealth, Equity Incentives and Firm Performance
    Elsila, Anna
    Kallunki, Juha-Pekka
    Nilsson, Henrik
    Sahlstrom, Petri
    [J]. CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW, 2013, 21 (01) : 26 - 41
  • [4] THE EFFECT OF CEO PAY DEVIATIONS ON CEO WITHDRAWAL, FIRM SIZE, AND FIRM PROFITS
    Fong, Eric A.
    Misangyi, Vilmos F.
    Tosi, Henry L., Jr.
    [J]. STRATEGIC MANAGEMENT JOURNAL, 2010, 31 (06) : 629 - 651
  • [5] The impact of firm size on dynamic incentives and investment
    Chi, Chang-Koo
    Choi, Kyoung Jin
    [J]. RAND JOURNAL OF ECONOMICS, 2017, 48 (01): : 147 - 177
  • [6] Firm-Level Climate Change Risk and CEO Equity Incentives
    Hossain, Ashrafee
    Abdullah-Al Masum
    Saadi, Samir
    Benkraiem, Ramzi
    Das, Nirmol
    [J]. BRITISH JOURNAL OF MANAGEMENT, 2023, 34 (03) : 1387 - 1419
  • [7] Firm size and R&D tax incentives
    Koga, T
    [J]. TECHNOVATION, 2003, 23 (07) : 643 - 648
  • [8] The impact of dividend-protected CEO equity incentives on firm value and risk
    Karpavicius, Sigitas
    Yu, Fan
    [J]. ECONOMIC MODELLING, 2018, 71 : 16 - 24
  • [9] The Interrelationships Between Information Technology Spending, CEO Equity Incentives, and Firm Value
    Masli, Adi
    Richardson, Vernon J.
    Sanchez, Juan Manuel
    Smith, Rodney E.
    [J]. JOURNAL OF INFORMATION SYSTEMS, 2014, 28 (02) : 41 - 65
  • [10] CEO Pay and Firm Size: An Update After the Crisis
    Gabaix, Xavier
    Landier, Augustin
    Sauvagnat, Julien
    [J]. ECONOMIC JOURNAL, 2014, 124 (574): : F40 - F59
12345