caa a22 4500 605483590 CHVBK 20210128100432.0 cr unu---uuuuu 210128e20150901xx s 000 0 eng 10.1007/s10551-014-2260-2 doi (NATIONALLICENCE)springer-10.1007/s10551-014-2260-2 Cronyism and the Determinants of Chairman Compensation [Elektronische Daten] [Lars Oxelheim, Kevin Clarkson] This study examines determinants of chairman compensation in a supervisory board setting and, specifically, the relationship between chairman and CEO compensation. Using a sample of publicly listed firms in Sweden, the study indicates that chairman compensation—despite its fixed nature—is reflective of firm performance via a positive relationship to CEO compensation. As CEO compensation is set before chairman compensation, we argue that the chairman may be inclined to conspire with the CEO in earnings management efforts at the expense of monitoring on behalf of investors. Supporting our cronyism argument, we find evidence that the gap between chairman and CEO compensation is less at firms where the chairman had previously served in the executive management team. The close ties between the chairman and CEO compensation add to the understanding of the relative success of the managerial power theory versus the agency theory in explaining CEO compensation. Springer Science+Business Media Dordrecht, 2014 Chairman compensation nationallicence CEO compensation nationallicence Cronyism nationallicence Pay-for-performance nationallicence Ownership structure nationallicence Supervisory board nationallicence Oxelheim Lars Lund University, Lund, Sweden aut Clarkson Kevin Lund University, Lund, Sweden aut Journal of Business Ethics Springer Netherlands 131/1(2015-09-01), 69-87 0167-4544 131:1<69 2015 131 10551 https://doi.org/10.1007/s10551-014-2260-2 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10551-014-2260-2 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Oxelheim Lars Lund University, Lund, Sweden aut NATIONALLICENCE 700 1- Clarkson Kevin Lund University, Lund, Sweden aut NATIONALLICENCE 773 0- Journal of Business Ethics Springer Netherlands 131/1(2015-09-01), 69-87 0167-4544 131:1<69 2015 131 10551