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CEO pay fairness as a predictor of stakeholder management

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  • Fong, Eric A.

Abstract

This study examines the relationship between chief executive officer (CEO) pay fairness and future stakeholder management (SM) as well as the effect of the board of directors on this relationship. The results show that CEO pay fairness has an effect on future SM such that when underpaid, CEOs decrease SM and when overpaid, CEOs increase SM. Additionally, the relationship between CEO pay fairness and SM becomes stronger as the ratio of inside directors on the board increases, which suggests that as both management control increases and board diversity decreases, the CEO's control over SM increases. Implications for SM and CEO pay are discussed.

Suggested Citation

  • Fong, Eric A., 2010. "CEO pay fairness as a predictor of stakeholder management," Journal of Business Research, Elsevier, vol. 63(4), pages 404-410, April.
    • Handle: RePEc:eee:jbrese:v:63:y:2010:i:4:p:404-410
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    Cited by:

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    3. Daina Mazutis & Katherine Hanly & Anna Eckardt, 2022. "Sustainability (Is Not) in the Boardroom: Evidence and Implications of Attentional Voids," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
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    5. Julija Winschel & Martin Stawinoga, 2019. "Determinants and effects of sustainable CEO compensation: a structured literature review of empirical evidence," Management Review Quarterly, Springer, vol. 69(3), pages 265-328, September.
    6. Fong, Eric A. & Xing, Xuejing & Orman, Wafa Hakim & Mackenzie, William I., 2015. "Consequences of deviating from predicted CEO labor market compensation on long-term firm value," Journal of Business Research, Elsevier, vol. 68(2), pages 299-305.
    7. Canace, Thomas G. & Cianci, Anna M. & (Kelvin) Liu, Xiaotao & Tsakumis, George T., 2020. "Paid for looks when others are looking: CEO facial traits, compensation, and corporate visibility," Journal of Business Research, Elsevier, vol. 115(C), pages 85-100.
    8. Kalon Si & Xin Long Xu & Hsing Hung Chen, 2020. "Examining the Interactive Endogeneity Relationship between R&D Investment and Financially Sustainable Performance: Comparison from Different Types of Energy Enterprises," Energies, MDPI, vol. 13(9), pages 1-15, May.
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