The impact of unions on compensation consultants and CEO pay

IF 2.9 3区 经济学 Q2 BUSINESS, FINANCE
Vikram Nanda, Takeshi Nishikawa, Andrew Prevost
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引用次数: 0

Abstract

Research on executive compensation finds unions to be associated with lower executive compensation, particularly incentive pay, while other work documents the role of compensation consultants in facilitating stronger CEO incentives and pay. We propose and test the implications of a simple theoretical framework that integrates these empirical findings. We find empirical support for our model's prediction that in environments less favorable to union organization (e.g., right-to-work states), firms with higher unionization rates strategically engage consultants to counter union influence, place greater value on their advice as gauged by consultant fees, and offer managers greater equity incentives opposed by unions. On the other hand, in strongly prolabor environments, unions are more successful at curtailing consultant use and have greater influence on the level of pay and incentives.

工会对薪酬顾问和首席执行官薪酬的影响
对高管薪酬的研究发现,工会与较低的高管薪酬(尤其是激励性薪酬)有关,而其他工作则记录了薪酬顾问在促进加强CEO激励和薪酬方面的作用。我们提出并测试了一个简单的理论框架,整合了这些实证研究结果的含义。我们发现实证支持我们模型的预测,即在不太有利于工会组织的环境中(例如,工作权利州),工会化率较高的公司会在战略上聘请顾问来对抗工会的影响,根据咨询费用衡量,他们的建议更有价值,并向管理人员提供工会反对的更大股权激励。另一方面,在强烈支持劳工的环境中,工会在减少顾问使用方面更成功,并对薪酬和激励水平产生更大的影响。
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来源期刊
Financial Management
Financial Management BUSINESS, FINANCE-
CiteScore
6.00
自引率
0.00%
发文量
27
期刊介绍: Financial Management (FM) serves both academics and practitioners concerned with the financial management of nonfinancial businesses, financial institutions, and public or private not-for-profit organizations.
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