Abstract
This study examines the relationship between CEO external directorate networks and CEO compensation. Drawing on previous research showing a link between executives' external networks, firm strategy, and performance, the study argues that executive external networks are strategically valuable to firms; thus, they should be reflected in executive compensation. The study further examines whether firm diversification, with its elevated demand for strategic resources, moderates the relationship between CEO external directorate networks and pay. Hypotheses are tested using a sample of 460 Fortune 1000 firms. Analyses reveal that the rewards to CEO external directorate networks are contingent upon the firm's level of diversification. Implications for future research and practice are discussed.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 889-898 |
| Number of pages | 10 |
| Journal | Strategic Management Journal |
| Volume | 22 |
| Issue number | 9 |
| DOIs | |
| State | Published - Sep 2001 |
| Externally published | Yes |
Keywords
- CEO compensation
- Executive networks
- Social capital
- Strategic leadership
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management