Zoom link: https://aarhusuniversity.zoom.us/j/68710070451

On 22 October at 14:00 via Zoom Miriam Flickinger will give a seminar entitled: 

Status or identity: How family firm CEOs' board network embeddedness affects their compensation

Abstract
This study focuses on how CEOs’ board networks influence their compensation in family firms. We integrate arguments from two streams of literature. First, based on the corporate governance literature, we hypothesize that when family CEOs hold higher numbers of outside board seats, they can demand higher compensation, as such ties increase their human and social capital. Second, drawing on the literature regarding family firms, social identification, and socioemotional wealth, we argue that family CEOs who are embedded in board networks with other family firms tend to identify more strongly with family firm logics. These family CEOs feel more committed to the non-economic goals of family businesses, place less emphasis on increasing their own personal status, and accept lower compensation. Using a sample of S&P 500 firms, we find support for the second line of our argument, thereby demonstrating a previously unexamined effect of CEOs’ board network embeddedness on their compensation.