CEO pay is indeed decoupled from CEO performance: charting a path for the future

Abstract

Purpose: The purpose of the study is to set a research agenda so that future conceptual and empirical research can improve the understanding of why CEO pay and CEO performance are decoupled. Design/methodology/approach: The paper compiles and adds to many of the explanations provided by this special issue’s nine commentaries regarding why CEO pay and CEO performance are decoupled. These explanations were grouped into two categories: economic (e.g. marginal productivity theory, agency theory and behavioral agency model) and social-institutional-psychological (e.g. CEO individual differences and characteristics and CEO-organization interactions). Moreover, new analyses based on additional data..