Abstract
In this study we examine the changes in executive compensation at the top management team (TMT) level following an environmental shift. Using the context of deregulation in the airline industry, we find that: (1) a dramatic environmental change that heightens managerial discretion leads to greater pay level and performance sensitivity of TMT compensation; and (2) the greater the magnitude of turnover among TMT members following the environmental shift, the greater the compensation change.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 747-754 |
| Number of pages | 8 |
| Journal | Strategic Management Journal |
| Volume | 28 |
| Issue number | 7 |
| DOIs | |
| State | Published - Jul 2007 |
| Externally published | Yes |
Keywords
- Deregulation
- Executive compensation
- Top management team
- Turnover
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management