caa a22 4500 605484740 CHVBK 20210128100437.0 cr unu---uuuuu 210128e20150101xx s 000 0 eng 10.1007/s10551-013-1995-5 doi (NATIONALLICENCE)springer-10.1007/s10551-013-1995-5 An Examination of the Effect of CEO Social Ties and CEO Reputation on Nonprofessional Investors' Say-on-Pay Judgments [Elektronische Daten] [Steven Kaplan, Janet Samuels, Jeffrey Cohen] CEO compensation has received much attention from both academics and regulators. However, academics have given scant attention to understanding judgments about CEO compensation by third parties such as investors. Our study contributes to the ethics literature on CEO compensation by examining whether judgments about CEO compensation (e.g., say-on-pay) are influenced by two aspects of a company's tone at the top—social ties between the CEO and members of the Executive Compensation Committee (ECC) and the CEO's Reputation, particularly for financial reporting and disclosures. Although, stock exchanges such as NASDAQ require ECC members to be independent, CEOs still may have social connections to the ECC. In addition, CEOs develop a reputation for the quality of their company's financial reporting and disclosures. We expect both CEO Social Ties and CEO Reputation to impact say-on-pay judgments, and that fairness perceptions about the CEO compensation will mediate the relationship. We conduct an experiment to test our hypotheses. In this study, we employ a two by two experimental design where we manipulate CEO Social Ties with members of the ECC (present/absent) and CEO Reputation for the quality of financial reporting disclosures (favorable/unfavorable). Participants were MBA students who provided a say-on-pay judgment (e.g., their agreement or disagreement with a resolution stating approval of the compensation paid to the Company's CEO), and judgments about the fairness of the CEO's compensation. Results indicate that CEO Social Ties affected participants' say-on-pay judgments, which were fully mediated by their perceptions about fairness of the CEO's compensation. Further, the CEO's Reputation also affected participants' say-on-pay judgments, which were fully mediated by their perceptions about fairness of the CEO's compensation. Implications for research and public policy are presented. Springer Science+Business Media Dordrecht, 2013 CEO compensation nationallicence Say-on-pay nationallicence Executive Compensation Committee nationallicence CEO Reputation nationallicence CEO Social Ties nationallicence Ethics nationallicence Distributive fairness nationallicence Procedural fairness nationallicence Kaplan Steven W.P. Carey School of Business, Arizona State University, Phoenix, AZ, USA aut Samuels Janet Thunderbird School of Global Management, Glendale, AZ, USA aut Cohen Jeffrey Carroll School of Management, Boston College, Chestnut Hill, MA, USA aut Journal of Business Ethics Springer Netherlands 126/1(2015-01-01), 103-117 0167-4544 126:1<103 2015 126 10551 https://doi.org/10.1007/s10551-013-1995-5 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/s10551-013-1995-5 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Kaplan Steven W.P. Carey School of Business, Arizona State University, Phoenix, AZ, USA aut NATIONALLICENCE 700 1- Samuels Janet Thunderbird School of Global Management, Glendale, AZ, USA aut NATIONALLICENCE 700 1- Cohen Jeffrey Carroll School of Management, Boston College, Chestnut Hill, MA, USA aut NATIONALLICENCE 773 0- Journal of Business Ethics Springer Netherlands 126/1(2015-01-01), 103-117 0167-4544 126:1<103 2015 126 10551