The role of evaluative uncertainty in CEO pay & early dismissal Conference Paper uri icon

abstract

  • We develop a theory of evaluative uncertainty and study its role in performance assessments of chief executive officers (CEOs). Evaluative uncertainty is a condition created by the absence of clear and unambiguous performance indicators, which makes it difficult to assess an executive's performance and thereby assign rewards - including the retention or firing of a recently appointed CEO. Specifically, our theory articulates the determinants of evaluative uncertainty and its consequences for the CEO in terms of their pay or early dismissal. Broad empirical support for our theory is shown in a sample of Fortune 1000 firms.

published proceedings

  • Academy of Management 2011 Annual Meeting - West Meets East: Enlightening. Balancing. Transcending, AOM 2011

author list (cited authors)

  • Graffin, S. D., Boivie, S., & Carpenter, M. A.

complete list of authors

  • Graffin, SD||Boivie, S||Carpenter, MA

publication date

  • January 2011