Wade, J. B. and Carpenter, M. A. (2002) 'Micro-level opportunity structures as determinants of non-CEO executive pay.', Academy of management journal., 45 (6). pp. 1085-1103.
We develop a theory wherein the pay of non-CEO executives can be explained by micro-level opportunity structures--the intersection of functional position, CEO background, human capital, and firm strategic resource allocation decisions. Our theory suggests a positive association between pay and a position made visible by resource allocation decisions, a functional background similar to that of the CEO, and a position that helps the firm manage strategic resource allocations. A unique longitudinal data set that combines survey and archival data on the four highest echelons of senior executives in large U.S. firms provided support for this multilevel framework.
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