Business, Management and Accounting
8 years ago

CEOs in Tech Firms Face Higher Compensation Risk Than Non-Tech CEOs

CEO Compensation, Compensation Risk, and Corporate Governance: Evidence from Technology Firms
Zhimin Yu

Paper Summary

CEOs in technology firms earn higher pay than CEOs in non-technology firms because they take on more compensation risk. This risk accounts for most of the difference in CEO pay between the two types of companies. This study supports the idea that CEOs receive competitive total compensation that reflects the risks they take on in their roles.

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