The determination of top executive pay: importance of human capital factors.
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LAING, D. and WEIR, C. 1998. The determination of top executive pay: importance of human capital factors. Journal of general management [online], 23(4), pages 51-62. Available from: https://doi.org/10.1177/030630709802300404.
Experience, rather than qualifications, influences the pay received by company directors. Executive pay has been the subject of much recent discussion, with concern being expressed about the levels of pay received by the chief executive officers of companies. One explanation for the apparently high levels of pay is that it reflects the accumulated experience and skills of the highest paid director (HPD). Characteristics such as age, experience and skills are measures of the HPD' s human capital. The basic premise is that the greater the investment an individual makes in human capital, the higher the expected return and therefore the higher the pay received.