Business Strategy and CEO Compensation: Evidence from the Hospitality and Tourism Industry*

IF 1.8 4区经济学 Q2 BUSINESS, FINANCE Asia-Pacific Journal of Financial Studies Pub Date : 2024-01-29 DOI:10.1111/ajfs.12461

Hye Seok Kim, Akinloye Akindayomi, Chune Young Chung, Adeduro Adesola Ogunmakin

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Abstract

This study examines the relationship between a hospitality and tourism (HT) firm's business strategy and the level and structure of compensation for its chief executive officer (CEO). Using the ordinary least square (OLS) estimation method, we find that firms in the HT industry that adopt an innovation-oriented business strategy increase their CEOs' total compensation. The increased compensation is not derived from a cash-based component but from an equity-based component of the total CEO compensation. The higher levels of risk exposure that HT firms encounter when adopting an innovation-oriented business strategy motivate these compensation dynamics. Further, HT firms that implement an innovation-oriented business strategy and possess a higher firm value are those that remunerate their CEOs using equity-based compensation. We find no such evidence for cash-based compensation. Therefore, we advocate for a strategy-induced compensation premium in the CEOs' compensation contracting for the HT industry.

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企业战略与 CEO 薪酬：来自酒店和旅游业的证据*

本研究探讨了酒店与旅游业（HT）公司的业务战略与其首席执行官（CEO）的薪酬水平和结构之间的关系。通过使用普通最小二乘法（OLS）估算方法，我们发现，采用创新型经营战略的酒店与旅游业公司会提高首席执行官的薪酬总额。增加的薪酬不是来自现金部分，而是来自 CEO 薪酬总额中的股权部分。高温高压企业在采用创新导向型业务战略时面临的风险水平较高，这也是这些薪酬动态变化的动因。此外，那些实施以创新为导向的商业战略并拥有较高公司价值的 HT 公司，也是那些使用股权薪酬来支付 CEO 薪酬的公司。我们没有发现基于现金的薪酬有这样的证据。因此，我们主张 HT 行业首席执行官的薪酬契约中存在战略诱导的薪酬溢价。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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