ERIC Number: ED396646
Record Type: RIE
Publication Date: 1996-Apr
Reference Count: N/A
The Pay-Performance Linkage Revisited: Is University Presidents' Pay Related to Reputation Ranking?
Tang, Thomas Li-Ping; And Others
An analysis of the total compensation of presidents and the five highest-paid employees at 190 private colleges and universities in 1993 looked at the additional variables of institutional expenditure level, institution type, reputation, and student Scholastic Assessment Test (SAT) scores. Results indicated that institutional expenditures, reputation, and institution type are somewhat related, and that presidents' compensation was also related to these three factors. However, compensation of the other five highest-paid employees was not found to be related to reputation, only to other institutional variables. The study concluded that: (1) presidents' pay is related to performance; (2) agency theory can be applied in this situation, in which the incentive system encourages mutual monitoring through the organization concerning pay and performance; and (3) since presidents' pay is related to objective performance data, procedural justice exists in the compensation system. Data analysis summaries are appended (Contains 36 references.) (MSE)
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Identifiers: Institutional Image; Ranking
Note: Paper presented at the Annual Meeting of the Southwestern Psychological Association (Houston, TX, April 1996).