Was Adam Smith right? evidence of compensating differential in CEO pay?

OnderzoeksoutputAcademicpeer review

1 Citaat (Scopus)


This paper estimates the compensating differential in CEO pay for the increasing risk of dismissal using contracted severance pay eligibility of the CEO as the main instrument. US CEOs receive a 3 per cent premium in pay for each percentage point increase in the risk of dismissal. In pointing to the dismissal risk as a determinant of CEO pay, these findings contribute to the debate on the recent growth in CEO pay and the potential impacts of governance reforms.
Originele taal-2English
Pagina's (van-tot)1-24
Aantal pagina's24
TijdschriftManchester School
Nummer van het tijdschrift1
StatusPublished - jan-2016
Extern gepubliceerdJa

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