The fattest of the fat cats: observations on Aguinis and colleagues’ findings on CEO pay

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Purpose: This paper aims to elaborate upon the work of Aguinis and colleagues (this issue), who showed that there is almost no overlap between the chief executive officers (CEOs; of American publicly traded corporations) who are in the upper tail of the CEO pay distribution and the firms that are in the upper tail of the performance distribution. Design/methodology/approach: This paper is an essay/commentary regarding the merits and implications of the paper by Aguinis and colleagues. Findings: Drawing upon prior work, the author proposes that CEOs’ tenure-long pay patterns are established – essentially baked-in or hardwired – when CEOs first get hired. For various reasons, some CEOs receive ultra-grand pay packages at the outset of their tenures, and nothing – including mediocre performance – brings about subsequent diminishment of those sweet terms. Research limitations/implications: This paper sheds new light on the work by Aguinis and colleagues, in turn contributing new insights about the fairness (or lack thereof) of CEO pay determinations. Originality/value: This paper integrates Aguinis and colleagues with prior works on CEO over- and underpayment.

Original languageEnglish (US)
Pages (from-to)31-37
Number of pages7
JournalManagement Research
Volume16
Issue number1
DOIs
StatePublished - Jan 1 2018

Fingerprint

CEO pay
Chief executive officer
Design methodology
Tenure
CEO tenure
Fairness

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

Cite this

@article{177453aaafc340759332e30cfd4d7556,
title = "The fattest of the fat cats: observations on Aguinis and colleagues’ findings on CEO pay",
abstract = "Purpose: This paper aims to elaborate upon the work of Aguinis and colleagues (this issue), who showed that there is almost no overlap between the chief executive officers (CEOs; of American publicly traded corporations) who are in the upper tail of the CEO pay distribution and the firms that are in the upper tail of the performance distribution. Design/methodology/approach: This paper is an essay/commentary regarding the merits and implications of the paper by Aguinis and colleagues. Findings: Drawing upon prior work, the author proposes that CEOs’ tenure-long pay patterns are established – essentially baked-in or hardwired – when CEOs first get hired. For various reasons, some CEOs receive ultra-grand pay packages at the outset of their tenures, and nothing – including mediocre performance – brings about subsequent diminishment of those sweet terms. Research limitations/implications: This paper sheds new light on the work by Aguinis and colleagues, in turn contributing new insights about the fairness (or lack thereof) of CEO pay determinations. Originality/value: This paper integrates Aguinis and colleagues with prior works on CEO over- and underpayment.",
author = "Hambrick, {Donald C.}",
year = "2018",
month = "1",
day = "1",
doi = "10.1108/MRJIAM-04-2017-0741",
language = "English (US)",
volume = "16",
pages = "31--37",
journal = "Management Research",
issn = "1536-5433",
publisher = "Emerald Group Publishing Ltd.",
number = "1",

}

The fattest of the fat cats : observations on Aguinis and colleagues’ findings on CEO pay. / Hambrick, Donald C.

In: Management Research, Vol. 16, No. 1, 01.01.2018, p. 31-37.

Research output: Contribution to journalArticle

TY - JOUR

T1 - The fattest of the fat cats

T2 - observations on Aguinis and colleagues’ findings on CEO pay

AU - Hambrick, Donald C.

PY - 2018/1/1

Y1 - 2018/1/1

N2 - Purpose: This paper aims to elaborate upon the work of Aguinis and colleagues (this issue), who showed that there is almost no overlap between the chief executive officers (CEOs; of American publicly traded corporations) who are in the upper tail of the CEO pay distribution and the firms that are in the upper tail of the performance distribution. Design/methodology/approach: This paper is an essay/commentary regarding the merits and implications of the paper by Aguinis and colleagues. Findings: Drawing upon prior work, the author proposes that CEOs’ tenure-long pay patterns are established – essentially baked-in or hardwired – when CEOs first get hired. For various reasons, some CEOs receive ultra-grand pay packages at the outset of their tenures, and nothing – including mediocre performance – brings about subsequent diminishment of those sweet terms. Research limitations/implications: This paper sheds new light on the work by Aguinis and colleagues, in turn contributing new insights about the fairness (or lack thereof) of CEO pay determinations. Originality/value: This paper integrates Aguinis and colleagues with prior works on CEO over- and underpayment.

AB - Purpose: This paper aims to elaborate upon the work of Aguinis and colleagues (this issue), who showed that there is almost no overlap between the chief executive officers (CEOs; of American publicly traded corporations) who are in the upper tail of the CEO pay distribution and the firms that are in the upper tail of the performance distribution. Design/methodology/approach: This paper is an essay/commentary regarding the merits and implications of the paper by Aguinis and colleagues. Findings: Drawing upon prior work, the author proposes that CEOs’ tenure-long pay patterns are established – essentially baked-in or hardwired – when CEOs first get hired. For various reasons, some CEOs receive ultra-grand pay packages at the outset of their tenures, and nothing – including mediocre performance – brings about subsequent diminishment of those sweet terms. Research limitations/implications: This paper sheds new light on the work by Aguinis and colleagues, in turn contributing new insights about the fairness (or lack thereof) of CEO pay determinations. Originality/value: This paper integrates Aguinis and colleagues with prior works on CEO over- and underpayment.

UR - http://www.scopus.com/inward/record.url?scp=85046771650&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85046771650&partnerID=8YFLogxK

U2 - 10.1108/MRJIAM-04-2017-0741

DO - 10.1108/MRJIAM-04-2017-0741

M3 - Article

AN - SCOPUS:85046771650

VL - 16

SP - 31

EP - 37

JO - Management Research

JF - Management Research

SN - 1536-5433

IS - 1

ER -