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When are bonus payments for managers perceived as fair? Results from a quasi-experiment

Author

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  • Stephan, Gesine
  • Dütsch, Matthias
  • Gückelhorn, Cathrin
  • Struck, Olaf

Abstract

We investigate under which circumstances bonus payments for managers are accepted as fair, asking workers to judge several hypothetical scenarios. We find that perceptions vary widely with the characteristics of the situation, as well as with the workers’ general attitudes.

Suggested Citation

  • Stephan, Gesine & Dütsch, Matthias & Gückelhorn, Cathrin & Struck, Olaf, 2014. "When are bonus payments for managers perceived as fair? Results from a quasi-experiment," Economics Letters, Elsevier, vol. 125(1), pages 130-133.
    • Handle: RePEc:eee:ecolet:v:125:y:2014:i:1:p:130-133
    DOI: 10.1016/j.econlet.2014.08.012
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    References listed on IDEAS

    as
    1. Cornelißen, T. & Himmler, O. & Koenig, T., 2011. "Perceived unfairness in CEO compensation and work morale," Economics Letters, Elsevier, vol. 110(1), pages 45-48, January.
    2. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, January.
    3. James Konow, 2003. "Which Is the Fairest One of All? A Positive Analysis of Justice Theories," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1188-1239, December.
    4. Katja Rost & Margit Osterloh, 2009. "Management Fashion Pay-for-Performance for CEOs," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 61(2), pages 119-149, April.
    5. Knut Gerlach & David Levine & Gesine Stephan & Olaf Struck, 2008. "Fairness and the employment contract: North American regions versus Germany," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(3), pages 421-439, May.
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    Cited by:

    1. Baert, Stijn & De Pauw, Ann-Sophie, 2014. "Is ethnic discrimination due to distaste or statistics?," Economics Letters, Elsevier, vol. 125(2), pages 270-273.
    2. Kübler, Dorothea & Schmid, Julia & Stüber, Robert, 2018. "Gender discrimination in hiring across occupations: a nationally-representative vignette study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55, pages 215-229.

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    More about this item

    Keywords

    Managerial compensation; Bonus payments; Justice perceptions; Fairness; Quasi-experiment;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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