Pay Disparities within Firms: The Role of Chief Executive Officers

摘要: Author(s): Shin, Taekjin | Abstract: This paper analyzes pay disparities between executive managers and rank-and-file workers at large United States corporations. Most existing studies on income inequality examine individual employee level. departs from this approach firm Based the view that organizations reflect nature of social political relationships in which top decision-makers are embedded, focuses role Chief Executive Officers (CEOs) shaping structure within their firms. Using a sample 254 largest U.S. corporations during period 1992-2005, analysis suggests CEOs’ power functional backgrounds affect top-five average companies. Firms managed by CEOs with longer tenure paid executives more, less, had greater compared to firms shorter-tenure CEOs. Similarly, recruited outside organization been internally promoted. The results also suggest finance background less have general management background.