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What do unions do to executive compensation?

Rafael Gomez () and Konstantinos Tzioumis

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: 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.

Keywords: Unions; CEO compensation; implicit regulation (search for similar items in EconPapers)
JEL-codes: J33 M54 J51 M52 (search for similar items in EconPapers)
Date: 2006-05
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http://eprints.lse.ac.uk/19865/ Open access version. (application/pdf)

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Working Paper: What Do Unions Do to Executive Compensation? (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:19865

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