Welcome to the InfoSci Platform
Reference Hub3
Determinates of Executive Compensation: A Hierarchical Linear Modeling Approach

Determinates of Executive Compensation: A Hierarchical Linear Modeling Approach

Owen P. Hall Jr., Kenneth Ko
Copyright: © 2014 |Volume: 4 |Issue: 2 |Pages: 11
ISSN: 2155-6393|EISSN: 2155-6407|EISBN13: 9781466655348|DOI: 10.4018/ijkbo.2014040104
Cite Article Cite Article

MLA

Hall Jr., Owen P., and Kenneth Ko. "Determinates of Executive Compensation: A Hierarchical Linear Modeling Approach." IJKBO vol.4, no.2 2014: pp.53-63. http://doi.org/10.4018/ijkbo.2014040104

APA

Hall Jr., O. P. & Ko, K. (2014). Determinates of Executive Compensation: A Hierarchical Linear Modeling Approach. International Journal of Knowledge-Based Organizations (IJKBO), 4(2), 53-63. http://doi.org/10.4018/ijkbo.2014040104

Chicago

Hall Jr., Owen P., and Kenneth Ko. "Determinates of Executive Compensation: A Hierarchical Linear Modeling Approach," International Journal of Knowledge-Based Organizations (IJKBO) 4, no.2: 53-63. http://doi.org/10.4018/ijkbo.2014040104

Export Reference

Mendeley
Favorite Full-Issue Download

Abstract

Executive compensation continues to grow at a time when the rest of America is hurting. Why is this so? Many business pundits believe that there is a total disconnect between executive compensation and company performance. The purpose of this paper is to illustrate how hierarchical modeling can be used to better understand the relationship between executive compensation and organizational efficacy. An analysis of S&P1500 firms for 2004 was performed using a two level hierarchical design. The results show that a number of manager and firm characteristics affect total compensation including executive age, revenues and Tobin's Q. These results can be used by compensation committees to better align executive pay with firm performance and prevailing social norms.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.