Managerial compensation and firm performance: A general research framework

A tremendous amount of research has explored the relationship between managerial pay and firm performance. The authors argue that this research has generally been limited because it ignores other criteria that can be used to determine managerial pay, as well as the influence of a firm's governance structure and various contingencies. The authors' analysis leads to a general framework for research on executive pay. This framework is used to evaluate the present state of research in this field and the contribution of the six papers in this special research forum, and to identify directions for further research.