CEO Utility Pay Literature Review
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- Google Scholar for CEO Utility Pay
- Google Scholar for CEO Compensation Electric Utility
- Academic OneFile
- CEO Utility Pay
Utility CEO Pay
From Wikipedia: Electric Utility "The compensation received by the executive in utility companies often receives the most scrutiny in the review of operating expenses. Just as regulated utilities and their governing bodies struggle to maintain a balance between keeping consumer costs reasonable and being profitable enough to attract investors, they must also compete with private companies for talented executives and then be able to retain those executives."
see Executive Compensation in the U.S. for a summary on why private companies seem to have an advantage in terms of CEO pay.
Why CEO Utility Pay?
CEO, or Chief Executive Officer, salary has risen dramatically over the past two decades. Utility companies are found to pay their CEO's significantly less than their private counterparts. This is being investigated to determine the chief reasons CEO's in the electrical utility industry seem to be paid less, and discover if their pay is justified.
How many methods for Calculation?
There are several generally agreed upon components to a CEO's salary:
- Base Salary
- Incentive Pay, Short Term (i.e., bonus)
- Incentive Pay, Long Term (i.e., stocks)
- Benefits (i.e., Cars, Health Care, Retirement)
key points found across all papers
Literature Review of CEO Utility Pay
Electric Utility Compensation
Political Constraints on Executive Compensation: Evidence from the Electric Utility Industry
P. L. Joskow, N. L. Rose, and C. D. Wolfram, “Political Constraints on Executive Compensation: Evidence from the Electric Utility Industry,” The RAND Journal of Economics, vol. 27, no. 1, pp. 165–182, 1996. Open Access
Linking CEO pay to firm performance: empirical evidence from the electric utility industry
Augustine I. Duru and Raghavan J. Iyengar, “Linking CEO pay to firm performance: empirical evidence from the electric utility industry,” Managerial Finance, vol. 25, no. 9, pp. 21–33, Sep. 1999. Open Access
The impact of regulation on CEO labor markets
D. Palia, “The impact of regulation on CEO labor markets,” RAND Journal of Economics, vol. 31, no. 1, p. 165, 2000. Open Access
CEO Compensation after Deregulation: The Case of Electric Utilities
General Executive Compensation
A comparison of CEO pay-performance sensitivity in privately-held and public firms
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