Abstract

http://ssrn.com/abstract=1108761
 
 

References (89)



 
 

Citations (5)



 


 



Does the Market for CEO Talent Explain Controversial CEO Pay Practices?


Martijn Cremers


University of Notre Dame

Yaniv Grinstein


Cornell University - Samuel Curtis Johnson Graduate School of Management

May 21, 2013

Review of Finance, Forthcoming

Abstract:     
Benchmarking, pay for luck, and the large compensation packages given to CEOs in recent years are three major controversial compensation practices. We examine the extent to which variation in the market for CEO talent explains these practices. We find that CEO compensation is benchmarked against other firms only in industries where CEO talent is not firm-specific, and that pay for luck is more prevalent there also. These findings are consistent with theories based on the market for CEO talent. However, CEO compensation levels do not depend on whether CEO talent is firm-specific, which seems inconsistent with the talent competition argument.

Number of Pages in PDF File: 55

Keywords: CEO Compensation, talent, Skills, CEO Turnover, talent pools, pay for luck

JEL Classification: J33, G34

Accepted Paper Series





Download This Paper

Date posted: March 26, 2008 ; Last revised: April 17, 2014

Suggested Citation

Cremers, Martijn and Grinstein, Yaniv, Does the Market for CEO Talent Explain Controversial CEO Pay Practices? (May 21, 2013). Review of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1108761 or http://dx.doi.org/10.2139/ssrn.1108761

Contact Information

K. J. Martijn Cremers
University of Notre Dame ( email )
P.O. Box 399
Notre Dame, IN 46556-0399
United States
Yaniv Grinstein (Contact Author)
Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )
Sage Hall
Ithaca, NY 14853
United States
607-255-8686 (Phone)
607-254-4590 (Fax)

Feedback to SSRN


Paper statistics
Abstract Views: 4,580
Downloads: 1,149
Download Rank: 9,173
References:  89
Citations:  5

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.375 seconds