Sharing the wealth: social comparisons and pay dispersion in the CEO's top team†

摘要: The antecedents and consequences of pay dispersion are studied using theory that focuses on the social comparisons occur among members CEO's top team. Results from a sample large public firms indicate when this elite group were similar variety dimensions, thus likely to compare their pay, board allowed less dispersion. In addition, was negatively related company performance, particularly it exceeded what could be justified by characteristics industry, firm, or But strength relationship depended how uniformly team would benefit subsequent performance gains. Specifically, negative effect strong in where major differences compensation—that is, some executives given significantly more stock options—combined with volatile price provide only few opportunity realize very financial gains future. study demonstrates social-psychological factors affect impact board's setting process, which turn affects dispersion, ultimately firm performance. Copyright © 2010 John Wiley & Sons, Ltd.