TITLE

DO YOU GET WHAT YOU PAY FOR? COMPENSATION OF NEW CEOS HIRED IN TURNAROUND SITUATIONS

AUTHOR(S)
CHEN, GUOLI
PUB. DATE
August 2009
SOURCE
Academy of Management Annual Meeting Proceedings;2009, Vol. 2009 Issue 1, p1
SOURCE TYPE
Conference Proceeding
DOC. TYPE
Article
ABSTRACT
This paper investigates the initial compensation package of new CEOs hired in turnaround situations. I find that firms in turnaround situations pay their new CEOs more than do comparable firms that are not in turnaround situations, and that they tend to use a higher percentage of stock-based pay. Such relations are stronger for externally appointed CEOs. In addition, higher pay attracts talented executives who are more capable, experienced, and well connected to acquire critical resources, and who will thus improve post-succession performance.
ACCESSION #
44243056

 

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