1994•SSRN Electronic JournalOpen access

You Can Pay Me Now and You Can Pay Me Later: The Persistent Effects of Firm Performance on Executive Compensation

John F. Boschen, Kimberly J. Smith

Abstract

The results of this study are that important intertemporal effects exist in the compensation-performance relation. This finding is important to the design of empirical studies of compensation and performance. The results further support the idea that the future income implications of good performance are as important, if not more important, than the contemporaneous effect. This finding has interesting public policy implications. That is, attempting to strengthen the pay-performance sensitivity by monitoring the contemporaneous relation may be dysfunctional.

About this research paper

What this paper is about

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Key concepts: Executive compensation, Pay for performance, Compensation (psychology), Dysfunctional family, Relation (database), Economics, Performance-related pay, Public economics