Industry Co-agglomeration, Executive Mobility and Compensation

60 Pages Posted: 4 Mar 2023

See all articles by Markus S. Broman

Markus S. Broman

Ohio University

Debarshi K. Nandy

Brandeis University - International Business School

Yisong S. Tian

York University - Schulich School of Business

Date Written: February 2023

Abstract

We find evidence of geographic segmentation in the market for top executives and identify industry co-agglomeration as the primary driver. When top executives move from one firm to another, nearly 40% of the moves are between local firms, which is more than five times greater than predicted by available employment opportunities. Furthermore, these local moves are dominated by moves among firms in co-agglomerated industries. While the strong local move bias is also accompanied by local co-movement in the compensation of top executives, the co-movement is driven by local peers in co-agglomerated industries only but not by other local peers.

Keywords: Industry co-agglomeration; Executive mobility; Geographic segmentation; Executive compensation; Local peers; Management style

JEL Classification: G34, M52

Suggested Citation

Broman, Markus S. and Nandy, Debarshi K. and Tian, Yisong Sam, Industry Co-agglomeration, Executive Mobility and Compensation (February 2023). Available at SSRN: https://ssrn.com/abstract=4373287 or http://dx.doi.org/10.2139/ssrn.4373287

Markus S. Broman

Ohio University ( email )

College of Business, Finance Department
Copeland Business Annex 207
Athens, OH 45701-2979
United States

HOME PAGE: http://www.markusbroman.com

Debarshi K. Nandy (Contact Author)

Brandeis University - International Business School ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

Yisong Sam Tian

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada
416-736-2100, ext 77943 (Phone)
416-736-5687 (Fax)

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