When more pays less: CEO career variety and CEO initial compensation
Type
conference paper
Date Issued
2018-08
Author(s)
Abstract
Studies show that generalist CEOs with high levels of career variety receive higher compensation. Challenging this prevailing assumption, we acknowledge the drawbacks of extensive levels of CEO career variety and predict an inverted U-shaped relationship between CEO career variety and CEO initial compensation. Integrating the generalism and specialization views of human capital, we postulate that, at an initial stage, the merits of increasingly varied human capital increase a CEO’s value and hence promote higher levels of compensation. After a threshold, however, the drawbacks associated with extensive levels of career variety offset its merits, gradually diminishing CEO value and pay.
Language
English
HSG Classification
contribution to scientific community
Event Title
Academy of Management Meeting (Chicago)
Subject(s)
Eprints ID
255952