The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries/Comments by Anni Norring, on The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries/Summary of the General Discussion on "The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries"

This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that long-term incentives given to CEOs in s...

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Bibliographic Details
Published in:Asian economic papers 2016-07, Vol.15 (2), p.109
Main Authors: Campbell, Cynthia J, Chang, Rosita P, DeJong, Jack C, Doktor, Robert, Oxelheim, Lan, Randøy, Trond, Norring, Anni
Format: Article
Language:English
Subjects:
Chief executive officers
Compensation
Economic growth
Equity
Executive compensation
GDP
Gross Domestic Product
Incentives
Studies
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Summary:This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that long-term incentives given to CEOs in some firms may convey to other CEOs that they too may be able to receive such incentives and rewards if they emulate the incentivized and rewarded CEOs. In a longitudinal study across 22 nations over a 5-year period, we find that the higher proportion of CEOs in a country are awarded long-term equity-based incentive compensation, the greater future real GDP growth, particularly in collectivist countries.
ISSN:1535-3516
1536-0083