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Shareholders pay considerable attention to the choice of executive selected as the new CEO whenever a change in leadership takes place. However, without an inside look at the leading candidates to assume the CEO role, it is difficult for shareholders to tell whether the board has made the...
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We construct a new index of CEO general managerial skill using the industry composition of the CEO compensation peer group and use it to examine the relation between CEO general skill and CEO pay. Our index has the advantage of capturing the board's perception of CEO general skill and is less...
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