2015
DOI: 10.1002/hrm.21766
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Executive Pay Matters: Looking Beyond the CEO to Explore Implications of Pay Disparity on Non‐CEO Executive Turnover and Firm Performance

Abstract: Using a longitudinal data set covering a span of 10 years, we investigate the impact of vertical and horizontal pay disparity on non‐CEO executive turnover and subsequent firm performance. Hypothesizing differential responses to pay disparity depending on a non‐CEO executive's responsibilities, we first categorize non‐CEO executives based on their job demands and their role in the organization (e.g., oversight, divisional). We then explore how pay disparity influences the relationship between executive categor… Show more

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Cited by 27 publications
(23 citation statements)
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“…Simply being enmeshed with an employer is unlikely to yield positive motivation or even long‐term retention. Focusing on offering competitive pay and benefits/perks would increase employees' instrumental attachment (Pissaris, Heavey, & Golden, ; Tröster, Van Quaquebeke, & Aquino, Forthcoming) as would developmental opportunities (Akkermans, Brenninkmeijer, Schaufeli, & Blonk, ; Nerstad, Dysvik, Kuvaas, & Buch, forthcoming) that would increase employees' skills and chances of promotion. In fact, recent research has focused on using technology to embed employees, whether through offering technology as perks or developing employees' organization‐specific or occupation‐specific technical skills (Charlier, Guay, & Zimmerman, ).…”
Section: Discussionmentioning
confidence: 99%
“…Simply being enmeshed with an employer is unlikely to yield positive motivation or even long‐term retention. Focusing on offering competitive pay and benefits/perks would increase employees' instrumental attachment (Pissaris, Heavey, & Golden, ; Tröster, Van Quaquebeke, & Aquino, Forthcoming) as would developmental opportunities (Akkermans, Brenninkmeijer, Schaufeli, & Blonk, ; Nerstad, Dysvik, Kuvaas, & Buch, forthcoming) that would increase employees' skills and chances of promotion. In fact, recent research has focused on using technology to embed employees, whether through offering technology as perks or developing employees' organization‐specific or occupation‐specific technical skills (Charlier, Guay, & Zimmerman, ).…”
Section: Discussionmentioning
confidence: 99%
“…In some ways, the exit transition process for executives begins in the same way as it does for all employees. For example, perceiving a pay disparity can push executives to initiate the exit process (Pissaris, Heavey, & Golden, 2017). CEOs can also be forced out of their jobs like any other employee (W. Shen & Cho, 2005).…”
Section: Exit Transitions Of Top Managementmentioning
confidence: 99%
“…For example, the passing of Steve Jobs in 2011 brought about a huge shock to Apple Inc. and led to the departure of several key executives since his successor, Timothy D. Cook, pays more attention to marketing than innovation. Previous research indicated that leadership transition can not only harm the atmosphere and performance of an organization [ 3 , 4 ], but also increase the turnover intention of its employees [ 5 ]. In particular, employees who hold a high-quality leader–member exchange relationship with their previous leader may experience more identity loss after leadership transition [ 6 , 7 ] since they were insiders of the previous leader’s “circle” and granted preferential treatment in terms of opportunities and resources in the workplace [ 8 ].…”
Section: Introductionmentioning
confidence: 99%