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Is (s)he worth it? Behavioural agency, CEO compensation complexity and the productivity-profitability dilemma

About the Research

To achieve multiple goals and enhance their performance, organizations have implemented executive compensation packages which have grown ever-more complex. Yet, despite their prevalence, little is known about the efficacy of ‘complex’ executive compensation packages on the organizational outcomes which they are designed to achieve. To address this gap, this study examines the relationship between CEO compensation, complexity, and growth in firm-level productivity. Drawing on behavioural theory rationales, we propose that the more complex CEO compensation packages become, the more they impede managerial focus on a given organizational goal, hindering firm productivity. We explain that the relationship between executive compensation and firm performance outcomes, goes beyond the manager’s appetite for strategic risk taking. We test our hypotheses on a set of over 1,146 individual firms for the period of 2013 – 2020. Among the principal contributions of this study, we advance our understanding of the efficacy of executive compensation complexity.

About Irina Surdu

Irina Surdu-Nardella is a Professor of International Business & Strategy at Warwick Business School, University of Warwick (UK). Professor Surdu’s main research interests lie in the study of international growth and the subsequent investment strategies of multinational enterprises. This includes the investment, exit, and re-entry strategies of global firms. More recently, Irina’s research has examined the organizational outcomes of corporate social irresponsibility in different international markets. Irina has won multiple awards for her research, including best paper awards at the Academy of Management, Academy of International Business UK-I, British Academy of Management and European International Business Academy. Professor Surdu’s research has also appeared in leading journals, such as: Journal of International Business Studies, Journal of World Business, British Journal of Management, International Business Review, Journal of International Management, California Management Review, amongst others. Professor Surdu is Co-Editor-in-Chief of Multinational Business Review and an Editorial Board Member of Journal of International Business Studies, Global Strategy Journal, Journal of World Business, and International Business Review. Her role within WBS extends to Programme Director of MSc Marketing & Strategy (MSMS) and Research Environment Lead for the SIB (Strategy & International Business) group.

Date: Thursday 15 May, 2025

Time: 12:45-14:15 CEST

Venue: Room Roland Calori (B3), (Zoom link provided to registered attendees)

Reminder: We no longer provide food as per school policy…

Should you want to attend, please register at https://forms.gle/rYxqPmw7cZsCrsHU8