We test the effects of stakeholder management on CEOs' salaries, bonuses, stock options, and total compensation. We also examine the extent to which the interaction of stakeholder management and financial performance determines compensation. Using a longitudinal database of 406 Fortune 1000 firms, our results suggest that stakeholder management is relevant to boards of directors when setting CEO compensation. Specifically, we found a significant, negative main effect of stakeholder management on CEO salaries. Further, we found that stakeholder management typically reduces the rewards CEOs may get for increasing levels of financial performance. In tandem, these results indicate that CEOs may jeopardize their personal wealth by pursuing stakeholder-related initiatives.
This paper develops a model of the total level of capital raised by biotech IPOs based on the timing of the offering and the scientific capabilities of the firm. The results indicate a positive relationship between the amount of capital raised by an IPO and the timing of the offering and the scientific capabilities of the firm.
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