Remuneration Logics: How Large U.S. Firms Justify Ceo Pay

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dc.contributor.authorCrombie, N.A.
dc.contributor.authorAlam, S.
dc.contributor.authorTan, V.
dc.date.accessioned2010-10-27T22:52:02Z
dc.date.available2010-10-27T22:52:02Z
dc.date.issued2010en
dc.description.abstractPurpose: The legitimacy of CEO pay in large U.S. firms has been repeatedly challenged in first decade of the 21st century. However, increases in CEO pay have continued to outpace corresponding changes in firm size and performance. This paper studies how large U.S. firms employ remuneration logics to legitimise CEO pay. Design/methodology/approach: Content analysis is used to identify 13 remuneration logics used in the 1998 and 2007 proxy statements from the largest 50 U.S. firms as well as 18 codes of practice issued between 1994 and 2007. Findings: The remuneration policies of U.S. firms have become increasingly homogenous over time. In 2007, all firms studied used the human resources, market and pay-for-performance logics to justify CEO pay. While firms use the remuneration logics to strategically manage their legitimacy, coercive and normative pressures are driving firms towards uniformity in their remuneration policies. Originality/value: Legitimacy and institutional theory are used to understand and explain organisational discourse on executive remuneration.en
dc.identifier.citationCrombie, N.A., Alam, S., Tan, V. (2010) Remuneration Logics: How Large U.S. Firms Justify Ceo Pay. Christchurch, New Zealand: 2010 AFAANZ Conference, 4-6 Jul 2010.en
dc.identifier.urihttp://hdl.handle.net/10092/4734
dc.language.isoen
dc.publisherUniversity of Canterbury. Department of Accounting and Information Systemsen
dc.relation.urihttp://www.afaanz.org/openconf-afaanz2010/modules/request.php?module=oc_program&action=view.php&id=352en
dc.rights.urihttps://hdl.handle.net/10092/17651en
dc.subjectcorporate governanceen
dc.subjectexecutive remunerationen
dc.subjectlegitimacy theoryen
dc.subjectinstitutional theoryen
dc.subject.anzsrcField of Research::14 - Economics::1402 - Applied Economics::140211 - Labour Economicsen
dc.subject.anzsrcField of Research::15 - Commerce, Management, Tourism and Services::1503 - Business and Management::150303 - Corporate Governance and Stakeholder Engagementen
dc.titleRemuneration Logics: How Large U.S. Firms Justify Ceo Payen
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