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Full-Text Articles in Labor Relations
Reciprocally Interlocking Boards Of Directors And Executive Compensation, Kevin F. Hallock
Reciprocally Interlocking Boards Of Directors And Executive Compensation, Kevin F. Hallock
Kevin F Hallock
Is executive compensation influenced by the composition of the board of directors? About 8% of chief executive officers (CEOs) are reciprocally interlocked with another CEO—the current CEO of firm A serves as a director of firm B and the current CEO of firm B serves as a director of firm A. Roughly 20% of firms have at least one current or retired employee sitting on the board of another firm and vice versa. I investigate how these and other features of board composition affect CEO pay by using a sample of 9,804 director positions in America's largest companies. CEOs who …
Dual Agency: Corporate Boards With Reciprocally Interlocking Relationships, Kevin F. Hallock
Dual Agency: Corporate Boards With Reciprocally Interlocking Relationships, Kevin F. Hallock
Kevin F Hallock
[Excerpt] This paper studies reciprocal interlocks of boards of directors of large firms where an employee of firm A sits on firm B's board and at the same time an employee of firm B sits on firm A's board. The study of Boards of Directors by those in economics and finance is not new. In fact, Dooley (1969) writes of interlocking directorates, but his definition is different in that he presents evidence of interlock where "at least one director ... sat on the board of at least one other of the largest companies". Books by Mizruchi (1982) and Pennings (1980) …