-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
DOES IT PAY TO PAY MORE TO NEW HIRES? THE COST AND EFFECTIVENESS OF NEW CEOS
Download This Article
William Bosworth, Anil Gulati 
, Sharon Lee
Abstract
Compensation and the post succession performance of 207 newly hired CEOs is examined to determine if there is any evidence that higher initial levels of compensation lead to superior firm performance. Using industry adjusted Tobin’s q as a measure of firm performance this study finds that there is no evidence that either higher initial total compensation levels or greater portions of equity based pay lead to superior firm performance. Increases in levels of compensation do anticipate improvements in firm performance one year in advance. Improved performance leads to increased levels of compensation for up to two subsequent years.
Keywords: Compensation, CEO, Firm Performance
How to cite this paper: Bosworth, W., Gulati, A., & Lee, S. (2008). Does it pay to pay more to new hires? The cost and effectiveness of new CEOs. Corporate Ownership & Control, 6(1-3), 338-346. https://doi.org/10.22495/cocv6i1c3p1
