Acceso usuarios
Sudip Datta, Mai Iskandar-Datta
This study extends current knowledge of upper echelon executive compensation beyond the CEO, specifically CFO compensation, based on whether they possess generalist or specialist skills. We find that �strategic� CFOs with an elite MBA (generalist) consistently command a compensation premium, while �accounting� CFOs (specialist) and CFOs with a non-MBA master's degree, even from an elite institution, do not. Further, scarce �strategic� CFOs are awarded both higher salaries and higher equity-based compensation. Our findings support the view that unique complementarities between scarce CFOs and firms increase these executives' bargaining power leading to pay premium. Our results are robust to post-hiring years, firm sizes, board characteristics, and CFO's insider/outsider status. We contribute at the confluence of upper-echelon compensation, executive human capital, resource-based view, and assortative matching literatures.
