Chief executive compensation: A synthesis and reconciliation

Sidney Finkelstein, Donald C. Hambrick

Research output: Contribution to journalArticle

174 Scopus citations

Abstract

Chief executive (CEO) compensation is a potent instrument through which theorists can improve their understanding of organization substance and symbol. This paper reviews and integrates the literature on CEO compensation, focusing on both determinants and consequences of this complex, often controversial phenomenon. The central thesis is that CEO pay is at once both more and less ‘sensible’ than its critics and architects, respectively, contend. Comprehending CEO compensation, whether for purposes of description or prescription, requires the use of multiple perspectives—economic, political, social, and individual.

Original languageEnglish (US)
Pages (from-to)543-558
Number of pages16
JournalStrategic Management Journal
Volume9
Issue number6
DOIs
Publication statusPublished - Jan 1 1988

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All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

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