Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Golden Parachutes: CEOs and the Exercise of Social Influence

James Wade, Charles A. O'Reilly, III and Ike Chandratat
Administrative Science Quarterly
Vol. 35, No. 4 (Dec., 1990), pp. 587-603
DOI: 10.2307/2393510
Stable URL: http://www.jstor.org/stable/2393510
Page Count: 17
  • Read Online (Free)
  • Download ($40.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Golden Parachutes: CEOs and the Exercise of Social Influence
Preview not available

Abstract

Using an agency theory framework and data on 89 Fortune 500 firms, we assess whether the granting of golden parachutes to chief executive officers is the result of an economically rational process or determined by the social influence of the CEO. While increased takeover risk is associated with a higher incidence of GPs, as predicted by economic theory, CEOs who are able to appoint more outsiders to their board are also more likely to have GPs. These results suggest that both economic and social influence perspectives have merit and that the importance of each may depend on the ownership structure of the firm.

Page Thumbnails

  • Thumbnail: Page 
587
    587
  • Thumbnail: Page 
588
    588
  • Thumbnail: Page 
589
    589
  • Thumbnail: Page 
590
    590
  • Thumbnail: Page 
591
    591
  • Thumbnail: Page 
592
    592
  • Thumbnail: Page 
593
    593
  • Thumbnail: Page 
594
    594
  • Thumbnail: Page 
595
    595
  • Thumbnail: Page 
596
    596
  • Thumbnail: Page 
597
    597
  • Thumbnail: Page 
598
    598
  • Thumbnail: Page 
599
    599
  • Thumbnail: Page 
600
    600
  • Thumbnail: Page 
601
    601
  • Thumbnail: Page 
602
    602
  • Thumbnail: Page 
603
    603