Bonus Payments, Hierarchy Levels, and Tenure: Theoretical Considerations and Empirical Evidence
Christian Grund and
Schmalenbach Business Review (sbr), 2012, vol. 64, issue 2, 101-124
We investigate two theoretical approaches that focus on bonuses as part of a firm’s long-term wage policy. The first approach argues that explicit bonuses serve as substitutes for implicit career concerns. The second claims that bonuses act as complements to an executive’s internal career. Our data show that throughout the whole chemical industry sector, bonus payments are mostly prevalent among the most senior executives and for management jobs rather than for jobs in research and development. The findings indicate that the two theoretical views are not mutually exclusive, but are both relevant in practice.
Keywords: Bonuses; Career Concerns; Hierarchy Levels; Internal Careers; Tenure (search for similar items in EconPapers)
JEL-codes: J31 J33 M51 M52 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Working Paper: Bonus Payments, Hierarchy Levels and Tenure: Theoretical Considerations and Empirical Evidence (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sbr:abstra:v:64:y:2012:i:2:p:101-124
Access Statistics for this article
Schmalenbach Business Review (sbr) is currently edited by Wolfgang Ballwieser
More articles in Schmalenbach Business Review (sbr) from LMU Munich School of Management Contact information at EDIRC.
Bibliographic data for series maintained by sbr ( this e-mail address is bad, please contact ).