Discussant Comment on An Examination of the Effect of CEO Social Ties and CEO Reputation on Nonprofessional Investors’ Say-on-Pay Judgments, by Steve Kaplan, Janet Samuels, Jeffrey Cohen
Journal of Business Ethics · 2015 · Volume 126 · Issue 1
DOI: 10.1007/s10551-013-2041-3
Abstract
In the 2012 (2011) calendar year, 2.6 % (1 %) of the reporting Russell 3000 companies failed to achieve 50 % support for say-on-pay resolution (Semler Brossy Consulting Group2012).Comparable event studies conducted at the passage of the Dodd-Frank Act in the United States have documented mixed results (e.g., Cai and Walking2011; Larcker et al.2011).Stated differently, perhaps it is CEO reputationand/orthe belief that the EPS is misstated that is causing the effect.Dimensionality is not a new debate in organizational justice research (e.g., Colquitt2001; Colquitt et al.2001).For example, a relative small amount of remuneration may, in a certain context, be “fair”.For example, prior research has found shareholder valuations of executive compensation may differ from manager valuations (Lambert et al.1991), and that ECCs take into account growth opportunities and product time horizons that are not fully captured by accounting or market information (Bushman et al.1996; Lambert and Larcker1987).
Keywords
Executive Compensation, Procedural Fairness, Organizational Justice, Earning Quality, Fairness Perception
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