This paper considers the relation between management quality, firm size, and managerial compensation. Exploring a German (SOEP) and a British (BHPS) data set we show that the impact of firm size on pay, which is consistently found in the management literature, vanishes (to a large extent) if it...

There is consensus that executive compensation is strongly tied to firm size and much less so to financial performance. Observed strategic change in corporations can affect these results. Based on multi-task theoretical considerations, the evidence for German industrial firms shows that...