Is The Sky the Limit? Fair Executive Pay as Performance Rises

Dados Bibliográficos

ID2245155
AutoresEsra Burak (Lingnan University, autor correspondente)
Ano2018
Volume65
Fascículo2
Páginas211-230
Data de publicação2018-05-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoSocial Problems (JOURNAL)
Identificadores do periódicoISSN: 0037-7791 • E-ISSN: 1533-8533
EditoraOxford University Press (PUBLISHER • GB)
DOI10.1093/socpro/spw050
OpenAlexW2560642664
IdiomaEN
Citações recebidas4
Referências citadas84

Recent research documents the public discontent with high income inequality yet an important limitation in our understanding is why such high pay is problematic according to many Americans. This study juxtaposes two explanations for the discontent that many Americans have shown regarding high Chief Executive Officer (CEO) pay: a) that the American discontent with extremely high CEO pay stems mainly from a belief that CEOs are not contributing highly enough to merit such high pay and b) the American discontent with extremely high pay is due to such pay being objectionable in principle. Using data from a national survey experiment (N = 989) uniquely designed to test these propositions, this study evaluates the relationship between performance and fair CEO pay. Respondents show aversion to high CEO pay while also embracing the principle of proportionality of rewards and contributions. Findings suggest that discontent with extremely high pay may be reconciled with support for pay for performance: the slope of the pay and performance function may be at issue rather than a hard limit on pay.

Chief executive officer · Compensation (psychology) · Economics · Executive compensation · Function (biology) · Health care · Limit (mathematics) · Management · Officer · Pay for performance · Political science · Experimental Behavioral Economics Studies · Law · Management and Organizational Studies · Psychology · Social and Cultural Dynamics · Social Psychology