Strategic Management Journal 2007

Changes in executive compensation following an environmental shift: the role of top management team turnover

Theresa S. Cho¹; Wei Shen²

¹ Rutgers, The State University of New Jersey · ² University of Florida

Abstract

In this study we examine the changes in executive compensation at the top management team (TMT) level following an environmental shift. Using the context of deregulation in the airline industry, we find that: (1) a dramatic environmental change that heightens managerial discretion leads to greater pay level and performance sensitivity of TMT compensation; and (2) the greater the magnitude of turnover among TMT members following the environmental shift, the greater the compensation change.

DOI

10.1002/smj.600

Sources

openalex

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓