Explaining Executive Pay

The roles of managerial power and complexity

  • Authors
  • Lukas¬†Hengartner

Table of contents

  1. Front Matter
    Pages I-XXIII
  2. Pages 1-8
  3. Pages 102-118
  4. Pages 119-158
  5. Pages 159-168
  6. Pages 169-178
  7. Back Matter
    Pages 179-204

About this book


The pay of corporate leaders has escalated in the last few decades. At the same time the number of research papers on this issue has soared. Despite an impressive research volume, however, many questions concerning executive compensation remain unsolved.

Lukas Hengartner develops broad concepts for managerial power and firm complexity and empirically tests the influence of these concepts on executive compensation for a large sample of Swiss stock-listed companies. As the jobs of some managers are more complex and demanding than others, these CEOs may command a pay premium in the managerial labor market. It has also been argued that top managers have the power to influence their own compensation. The author shows that both firm complexity and managerial power are associated with higher pay levels. This suggests that top managers are paid for the complexity of their job and that more powerful top managers receive pay in excess of the level that would be optimal for shareholders.


Corporate governance Executive Pay Executive compensation Human Resources Management Top management

Bibliographic information

  • DOI
  • Copyright Information Deutscher Universit√§ts-Verlag | GWV Fachverlage GmbH, Wiesbaden 2006
  • Publisher Name DUV
  • eBook Packages Business and Economics
  • Print ISBN 978-3-8350-0561-7
  • Online ISBN 978-3-8350-9391-1
  • Buy this book on publisher's site