Using data on US public firms, I uncover a strong and positive correlation between executive compensation and labor expenses. On average, a 1? % increase in the wage bill translates into a 0.3? % raise in total executive pay. This association is driven by wages rather than by employment growth, is stronger for the incentive than for the salary component of executive compensation, and is particularly pronounced in the financial sector.

Executive Compensation and Labor Expenses

Colonnello, Stefano
2020-01-01

Abstract

Using data on US public firms, I uncover a strong and positive correlation between executive compensation and labor expenses. On average, a 1? % increase in the wage bill translates into a 0.3? % raise in total executive pay. This association is driven by wages rather than by employment growth, is stronger for the incentive than for the salary component of executive compensation, and is particularly pronounced in the financial sector.
File in questo prodotto:
File Dimensione Formato  
manuscript.pdf

non disponibili

Descrizione: Articolo principale
Tipologia: Documento in Pre-print
Licenza: Accesso chiuso-personale
Dimensione 379.96 kB
Formato Adobe PDF
379.96 kB Adobe PDF   Visualizza/Apri

I documenti in ARCA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3722525
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? 0
social impact