Document Type

Report

Key Takeaways

Boards are more likely to attribute company success to the CEO when the CEO has committed the company to making bigger strategic investments. • CEO pay is more closely aligned with firm performance when firms make heavier strategic investments. • The relationship between the CEO’s pay and firm performance that is strengthened by strategic investments is even stronger when the CEO is more prestigious.

Publication Date

2020

Source

Shi, W., Connelly, B., & Mackey, J. (2019). Placing their bets: The influence of strategic investment on CEO pay-for-performance. Strategic Management Journal, 40: 2047-2077.

Disciplines

Business

Copyright

© 2020, University of South Carolina

Included in

Business Commons

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