Date Added: Aug 2010
In this paper, the authors develop and test predictions regarding the impact of CEO status on the economic outcomes of members of his or her top management team. Using a unique data set incorporating Financial World's widely publicized CEO of the Year contest, they found that non-CEO top management team members received higher pay when they worked for a high status CEO and were also more likely to become CEOs themselves. At the same time, however, the pay gap between the CEO and the rest of the top management team was wider in firms with high status CEOs. They also show that there is a "Burden of celebrity" in that the above relationships are contingent on how well a firm performs.