 Social ties, group dynamics, and executive compensation: an integrative two-stage frameworkWon-Yong Oh, Rami Jung and Young Kyun Chang International Journal of Business Governance and Ethics, 2024, vol. 18, issue 1, 45-63 Abstract: While the effect of top executives' social networks on their compensations has received substantial scholarly attention, little effort has been made to integrate segmented views to offer more complete understanding of this effect. In this paper, we propose an integrative two-stage model by taking both economic and socio-political views into account. We theorise that some characteristics of top executive's outside social ties are positively related to firm performance, and those relationships are conditioned by external and internal strategic contexts, such as environmental uncertainty, strategic relevance, and tie strength. We also theorise that firm performance leads to executives' compensations, but this linkage is moderated by the socio-political dynamics among executives (within-group dynamics) as well as between executives and a board of directors (between-group dynamics) inside the firm. Based on our integrative framework, this paper provides the comprehensive understanding of how executives' compensations are determined and highlights the importance of executive's social ties and their implications. Keywords: social ties; executive compensation; strategic contexts; economic view; socio-political view. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbget:v:18:y:2024:i:1:p:45-63 Access Statistics for this article More articles in International Journal of Business Governance and Ethics from Inderscience Enterprises Ltd |
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