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What do unions do to executive compensation?

Gomez, Rafael and Tzioumis, Konstantinos (2006) What do unions do to executive compensation? CEPDP, CEPDP0720. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753019469

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Identification Number: CEPDP0720


In this paper we estimate the relation between union presence within a firm and CEO compensation, using a unique panel of publicly listed companies for the period 1992 to 2001. We find that, on average, union presence: 1) is significantly associated with lower levels of total CEO compensation; 2) affects the mix of CEO compensation by providing higher levels of base pay but much lower stock option values; 3) lowers dispersion across the major components of CEO remuneration and 4) does not significantly reduce the performance sensitivity of CEO compensation as compared to non-union firms. These results are consistent with several models of union influence.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2006 the authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
Sets: Research centres and groups > Managerial Economics and Strategy Group
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 23 Jul 2008 11:25
Last Modified: 09 Aug 2013 11:05

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