CRONQVIST, HENRIK; HEYMAN, FREDRIK; NILSSON, MATTIAS; … - In: Journal of Finance 64 (2009) 1, pp. 309-339
Analyzing a panel that matches public firms with worker-level data, we find that managerial entrenchment affects workers' pay. CEOs with more control pay their workers more, but financial incentives through cash flow rights ownership mitigate such behavior. Entrenched CEOs pay more to employees...