Are CEOs in family firms paid like bureaucrats?: evidence from Bayesian and frequentist analyses

Arbeitspapier

The relationship between CEO pay and performance has been much analyzed in the management and economics literature. This study analyzes the structure of executive compensation in family and non-family firms. In line with predictions of agency theory, it is found that the share of base salary is higher with family-member CEOs than it is with nonfamily member CEOs. Furthermore, family-member CEOs receive a lower share of option pay. The paper's findings have implications for family business research and the executive compensation literature. To make the findings robust, the statistical analysis is performed with both Bayesian and classical frequentist methods.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 649 Discussion Paper ; No. 2008,033

Classification and Topics

• Classification: Wirtschaft ; Corporate Finance and Governance: General ; Wages, Compensation, and Labor Costs: General ; Personnel Economics: Compensation and Compensation Methods and Their Effects
• Subject: Executive compensation ; family firms ; stock options ; agency theory ; Bayesian analysis ; Führungskräfte ; Vergütungssystem ; Familienunternehmen ; Agency Theory ; Aktienoptionsplan ; Schätzung ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Block, Jörn Hendrich
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk
• (where): Berlin
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/25275
• Last update: 10.03.2025, 11:44 AM CET