IS CEO PAY IN HIGH-TECHNOLOGY FIRMS RELATED TO INNOVATION?

Abstract
This study uses the resource-based view of the firm and agency theory to examine the relationship between innovation and CEO pay in 90 high-technology firms. With firm size, performance, and other factors controlled, CEO short-term compensations was related to innovation as measured by number of patents and R&D spending. The data also suggest a less consistent temporal relationship between innovation and long-term CEO compensation in the high-technology firms. In a control sample of 74 low-technology firms, there was no relationship between innovation and either short- or long-term CEO pay.

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