The burden of celebrity: The impact of CEO certification contests on CEO pay and performance

Wade, J.B.; Porac, J.; Pollock, T.; Graffin, S.

doi:10.5465/amj.2006.22083021

The burden of celebrity: The impact of CEO certification contests on CEO pay and performance

Wade, J.B.; Porac, J.; Pollock, T.; Graffin, S.

Authors

J.B. Wade

J. Porac

T. Pollock

S. Graffin

Abstract

We used the results from Financial World's widely publicized certification contest, CEO of the Year, to investigate the impact of such contests on firm performance and executive compensation. A certification contest ranks actors on performance criteria that key stakeholders accept as credible and legitimate. We found that certified CEOs received higher compensation than noncertified CEOs when performance was high but lower remuneration when performance was poor. Although certifications generate positive abnormal returns when they are first announced, the longer-term impact of CEO certifications appears to be negative.

Citation

Wade, J., Porac, J., Pollock, T., & Graffin, S. (2006). The burden of celebrity: The impact of CEO certification contests on CEO pay and performance. Academy of Management Journal, 49(4), 643-660. https://doi.org/10.5465/amj.2006.22083021

Journal Article Type	Article
Publication Date	Aug 1, 2006
Deposit Date	Aug 27, 2008
Publicly Available Date	Nov 30, 2017
Journal	Academy of Management Journal
Print ISSN	0001-4273
Publisher	Academy of Management
Peer Reviewed	Peer Reviewed
Volume	49
Issue	4
Pages	643-660
DOI	https://doi.org/10.5465/amj.2006.22083021
Public URL	https://durham-repository.worktribe.com/output/1572655