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Business Commons

Open Access. Powered by Scholars. Published by Universities.®

Business Administration, Management, and Operations

Kennesaw State University

2001

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Full-Text Articles in Business

New Evidence On The Structuring Of Ceo Incentive Pay Ratios, Rajaram Veliyath, James J. Cordeiro Jan 2001

New Evidence On The Structuring Of Ceo Incentive Pay Ratios, Rajaram Veliyath, James J. Cordeiro

Faculty and Research Publications

The model examines both determinants of CEO incentive pay ratios that are controllable by the CEO, and those that are less controllable, based on a sample of 316 Fortune 500 firms in 1992. Firm diversity, firm growth opportunities, outside blockholdings, and the number of analysts following the firm were positively related to CEO incentive compensation ratios, while firm unsystematic risk, CEO stockholdings, and industry regulation had a negative impact. Finally, industry-specific influences were evident on incentive compensation ratios.