Looking for respect? How priorTMTsocial comparisons affect executives' newTMTengagements

• 成果类型: Article
• 署名作者: Aime, Federico; Hill, Aaron D.; Ridge, Jason W.
• 署名单位: Oklahoma State University System; Oklahoma State University - Stillwater; State University System of Florida; University of Florida; University of Arkansas System; University of Arkansas Fayetteville
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.3186
• 发表日期: 2020
• 页码: 2185-2199
• 关键词: Executive compensation; pay disparity; PAY DISPERSION; Social comparison; turnover

摘要

Research summary We extend social comparison theory and research in top management teams by showing that negative social comparisons in TMTs have implications for subsequent employment decisions after executive turnover. In a sample of 1,001 executive employment moves to new TMTs, our results show that executives with lower relative pay in the firms they exit join firms that improve their social comparison situation within the new TMT when compared to their previous experience-while not necessarily providing larger improvements in pay. These findings complement social comparison views on executive turnover by showing that executives' new employment decisions are guided by the correction of negative social comparisons in their new firms. Managerial summary We show that executives who experience negative social comparisons in pay in a TMT because of their lower relative rank in its pay structure select new employment in firms with more narrow pay differences within their TMT. In addition, we show that such executives improve their relative pay in comparison to others in the TMT in their new TMTs without necessarily experiencing abnormal improvements in pay. These findings show that social comparisons in pay between TMT members may not only drive executive turnover, as previously shown in the literature, but also directs executive decisions about new TMT engagements. Together, our findings imply that social comparisons are an important factor in executive employment decisions.