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Brian P. Soebbing
The literature examining executive and upper management compensation has looked at a variety of factors. Within sport, coaches are equivalent to these positions with one of the major factors determining total compensation being on-field performance. However, little is known on how expectations of on-field performance compared to actual performance affect compensation. The purpose of this study is to analyze the effect of performance expectations on Division I - Football Bowl Subdivision head football coaches’ total compensation. Using data from 2006 to 2013, compensation increases when on-field performance expectations are exceeded. The impact of an additional on-field win relative to performance expectations is between 5.0 and 5.5% in terms of additional compensation. However, no statistically significant effect exists when comparing coaches at automatic qualifying versus non-automatic qualifying schools. In addition, off-field measures of performance as well as individual and university characteristics affect total compensation.
