Overpaid CEOs and Underpaid Managers: Fairness and Executive Compensation

By James B. Wade, Charles A. O'Reilly, Timothy G. Pollock. Organ. Sci., 2006

434 citations recorded by the source corpus.

Subfields: Accounting, Safety Research, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/997145019decfa9020b30d37d5c100c7ac56adc6

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Safety Research

In Strategy and Management

Citations in the corpus

6 Pay and Performance: Individuals, Groups, and Executives (2009, background): “) Finally, executive pay is also sometimes seen as influencing how non‐executives (and other executives) in an organization feel and perform (Cowherd & Levine, 1992 ; Wade, O’Reilly, & Pollock, 2006 ).”
How Firms Shape Income Inequality: Stakeholder Power, Executive Decision Making, and the Structuring of Employment Relationships (2015, background): “Lastly, while organizational scholars have been largely silent about the factors that lead to societal levels of income inequality, the impact of income dispersion on individual outcomes, such as motivation and turnover (Shaw, Gupta, & Delery, 2002; Trevor, Reilly, & Gerhart, 2012; Wade et al., 2006”
8 Social Hierarchy: The Self‐Reinforcing Nature of Power and Status (2008, background): “For example, overpayment of top executives negatively affects employees in an organization: one study involving more than 120 firms over a 5‐year period found that when wage dispersion is perceived to be too high, low‐level employees are more likely to leave the organization (Wade, O’Reilly, & Pollo”
When Hierarchy Wins (2012, background): “Despite these compelling theories on the value of hierarchy, many studies have shown that pay dispersion, an omnipresent form of hierarchical differentiation in organizations, has negative effects on organizational performance (e.g., Bloom, 1999; Wade et al., 2006).”
Behavioral Agency Theory (2015, background): “Equation 2, after Vroom (1964), which is in turn modified by the inclusion of time discounting and risk and loss aversion to become Equation 3, after Steel and König (2006), explains the relationship between compensation and agent motivation.”
Minding the Gap (2016, background): “1 Although scholars have sought to understand the implications of widening pay dispersion for firms and the people they employ (Beaumont & Harris, 2003; Wade et al., 2006), this work has failed to reach consensus regarding its effects.”
Organizations Gone Wild: The Causes, Processes, and Consequences of Organizational Misconduct (2010, background): “The striking difference between contemporaneous and post hoc evaluations of his performance is not unique, and seems to go beyond the status effect of bad news shown in celebrity CEOs (Wade et al., 2006).”
When much more of a difference makes a difference: Social comparison and tournaments in the CEO's top team (2015, background): “Top executives tend to have much in common (Hills, 1980; O’Reilly, Main, and Crystal, 1988; Wade, O’Reilly, and Pollock, 2006) and comparisons between them are strengthened or weakened by perceptions of similarity in a variety of attributes like age, tenure, status, power, performance, and pay.”
Executive Compensation: A Multidisciplinary Review of Recent Developments (2007, positive): “Finally, examining the importance of pay fairness, Wade et al. (2006) found that CEO over- or underpayment cascades downward through managerial ranks.”