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Tip of the Iceberg? Organisational Foundations of Top Pay in New Zealand Listed Companies, 1995-2014

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Listed:
  • Tim Hazledine

    (University of Auckland Business School)

Abstract

A unique database on numbers and pay of all employees earning more than $150,000/ year in all New Zealand listed companies between 1995 and 2014 reveals substantial increases in the pay of the CEO and in the size of the hierarchy of managers reporting to the CEO. None of the growth in Top Pay can be accounted for by growth in the size of these companies. Factors that do explain cross sectional variation in CEO pay are identified.

Suggested Citation

  • Tim Hazledine, 2016. "Tip of the Iceberg? Organisational Foundations of Top Pay in New Zealand Listed Companies, 1995-2014," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(3), pages 197-206.
    • Handle: RePEc:ozl:journl:v:19:y:2016:i:3:p:197-206
    as

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    References listed on IDEAS

    as
    1. Laschever, Ron A., 2013. "Keeping up with CEO Jones: Benchmarking and executive compensation," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 78-100.
    2. Pedro Ortin-Angel & Vicente Salas-Fumas, 2002. "Compensation and Span of Control in Hierarchical Organizations," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 848-876, October.
    3. Raghuram G. Rajan & Julie Wulf, 2006. "The Flattening Firm: Evidence from Panel Data on the Changing Nature of Corporate Hierarchies," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 759-773, November.
    4. Alex Edmans & Xavier Gabaix, 2016. "Executive Compensation: A Modern Primer," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1232-1287, December.
    5. Smeets, Valerie & Warzynski, Frederic, 2008. "Too many theories, too few facts? What the data tell us about the link between span of control, compensation and career dynamics," Labour Economics, Elsevier, vol. 15(4), pages 687-703, August.
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    More about this item

    Keywords

    CEO Pay; Income distribution; Managerial hierarchies;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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