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CEO Utility Pay Literature Review

1,444 bytes added, 02:25, 27 January 2016
Strategic orientations, incentive plan adoptions, and firm performance: Evidence from electric utility firms
===Strategic orientations, incentive plan adoptions, and firm performance: Evidence from electric utility firms===
[http://www.jstor.org/stable/3088200?seq=1#page_scan_tab_contents N. Rajagopalan, “Strategic orientations, incentive plan adoptions, and firm performance: Evidence from electric utility firms,” Strategic Management Journal, vol. 18, no. 10, p. 761, 1997.]
*Relates everything to Miles and Snow (1978) Defender and Prospector firms*Not very useful, re-states what other studies have said, but makes it more confusing by adding defender vs. prospector firms.*Prospector Firms: Offer their top managers discretion. *Defender firms: Adopt and protect narrow and stable domains.*Hypothesis 1: Annual bonus plans will have a stronger positive effect on firm performance among defenders than among prospectors:*supported for accounting measure of performance, not market measure*Hypothesis 2a: Long term performance plans which use accounting measures as performance criterea will have a stringer positive effect on firm performance among defenders than among prospectors:*Not supported*Hypothesis 2b: Long term plans which use market-based measures as performance criterea will have a stronger positive effect on firm performance among prospectors than among defenders:*Strong support*Hypothesis 2c: long term performace plans which offer cash incentives will have a stronger positive effect on firm performance among defenders than among prospectors:*Not supported`*Hypothesis 2d: long term performance plans which offer stock incentive will have a stronger positive effect on firm performance among prospectors than among defenders:*Strong support*Hypothesis 3: Stock option plans will have a stronger positive effect on firm performance among prospectors than among defenders:*Strong support
===Linking CEO pay to firm performance: empirical evidence from the electric utility industry===
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