Preprint
Pre-CEO Executive Skill Accumulation, Firm Size and Pay Limits in the CEO Market
Abstract
This paper studies costly pre-CEO executive skill accumulation by executives, followed by stable matching between firms and CEOs. An increase in the heterogeneity of firm size relative to executive type induces a decrease in the informational effect of skill accumulation, resulting in improvement of efficiency. It shows that the CEO pay limit changes not only equilibrium pays to high paid CEOs but equilibrium pays to all CEOs. Severe CEO pay …
Authors
Han S
Publication date
January 1, 2016
DOI
10.2139/ssrn.2756001
Preprint server
SSRN Electronic Journal