Does globalization create superstars? : a simple theory of managerial wages ; conference paper

Schmutzler, Armin; Gersbach, Hans

To examine the impact of globalization on managerial compensation, we consider a matching model where firms compete both in the product market and in the managerial market. We show that globalization, that is, the simultaneous integration of product markets and managerial pools, leads to an increase in the heterogeneity of managerial salaries. Typically, while the most able managers obtain a wage increase, less able managers are faced with a reduction in wages. Hence our model can explain the increasing heterogeneity of CEO compensation that has been observed in the last few decades.

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Year of publication:	2013 ; This version: October 2012
Authors:	Gersbach, Hans ; Schmutzler, Armin
Published in:	Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung Session: Managers: behaviour and wages ; V3
Publisher:	[Kiel : ZBW
Subject:	Globalization \| manager remuneration \| superstars \| Globalisierung \| Lohn \| Wages \| Führungskräfte \| Managers \| Welt \| World \| Theorie \| Theory \| Vergütungssystem \| Compensation system \| Multinationales Unternehmen \| Transnational corporation