Are executives paid for the complexity of the job they have?
Complexity can be referred to as a state of being difficult to understand or explain because an entity has many different parts or sub-components. In the context of a corporation and its environment, complexity can arise from a variety of factors. Differing business segments and products, a firm’s organizational structure, various functional systems (e.g. HR systems, accounting systems), a multicultural workforce, different national regulations, the structure of product markets and supplier relationships, the differing demands of various stakeholder groups, a politicized environment or a high reliance on activities with an uncertain payoff such as research and development all are elements of a CEO’s job complexity.
KeywordsFirm Size Executive Compensation Foreign Subsidiary Firm Internationalization Market Uncertainty
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