This study uses the resource-based view of the firm and agency theory to examine the relationship between innovation and CEO pay in 90 high-technology firms. With firm size, performance, and other factors controlled, CEO short-term compensation was related to innovation as measured by number of patents and R&D spending. The data also suggest a less consistent temporal relationship between innovation and long-term CEO compensation in the high-technology firms. In a control sample of 74 low-technology firms, there was no relationship between innovation and either short-or long-term CEO pay.
ASJC Scopus subject areas
- Business and International Management
- Business, Management and Accounting(all)
- Strategy and Management
- Management of Technology and Innovation