Title
The Effects of Research and Development Intensity on Managerial Compensation in Large Organizations
Publication Date
March 1990
Abstract
Agency theory, leading edge, and administrative life cycle perspectives all predict that organizations having high levels of Research and Development (R&D) intensity will follow different compensation strategies than organizations that are less R&D intensive. Using data from 110 organizations over a 5 year period, and controlling for organization differences in employee and job characteristics, we found support for this general prediction. Specifically, high R&D intensity organizations tended to have higher relative base pay, higher relative bonus pay, and greater relative eligibility for long-term incentive payments. We discuss the importance of further research into compensation decisions in R&D intensive firms, particularly the effects of such decisions on firms' competitiveness.
Comments
Suggested Citation
Milkovich, G. T., Gerhart, B., & Hannon, J. (1990). The effects of research and development intensity on managerial compensation in large organizations (CAHRS Working Paper #90-09). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.
http://digitalcommons.ilr.cornell.edu/cahrswp/374