The Price of a CEO's Rolodex
University of California, San Diego (UCSD) - Rady School of Management
University of Notre Dame - Mendoza College of Business
Christopher A. Parsons
University of California, San Diego (UCSD)
CEOs with large networks earn more than those with small networks. An additional connection to an executive or director outside the firm increases compensation by about $17,000 on average, more so for “important” members such as CEOs of big firms. Pay-for-connectivity is unrelated to several measures of corporate governance, evidence in favor of an efficient contracting explanation for CEO pay.
Number of Pages in PDF File: 50
Keywords: Executive Compensation, Social Network
JEL Classification: G30working papers series
Date posted: March 21, 2009 ; Last revised: May 30, 2012
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