Chief executive compensation: A synthesis and reconciliation
Article first published online: 8 NOV 2006
Copyright © 1988 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 9, Issue 6, pages 543–558, November/December 1988
How to Cite
Finkelstein, S. and Hambrick, D. C. (1988), Chief executive compensation: A synthesis and reconciliation. Strat. Mgmt. J., 9: 543–558. doi: 10.1002/smj.4250090603
- Issue published online: 8 NOV 2006
- Article first published online: 8 NOV 2006
- Manuscript Revised: 12 JAN 1988
- Manuscript Received: 6 APR 1987
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.