Abstract
This study investigates the influence of former CEO directors on the executive-employee pay gap. We find that former CEO directors significantly increase the executive-employee pay gap. This effect is more pronounced in non-state-owned companies, companies in less competitive product markets, weaker corporate supervision environments, and with lower shareholding ratios of majority shareholders. Further evidence shows that only when former CEOs serve as the chairman of the board can they have a direct influence on the executive-employee pay gap; the former CEO director focuses only on executive compensation but not on employee compensation. Finally, we find that the pay gap occasioned by the former CEO director has a negative impact on the future accounting performance of the company.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
