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For the past 30 years, economists and management theorists have empirically investigated the compensation of top executives. An issue that has received critical attention is what appears to be a weak link between top executive compensation and performance. In contrast to rational models that have characterized most previous studies, this paper develops a political perspective to explain why the linkage between rewards and performance is weak. Implications for research and management practice are presented.
Ungson et al. (Sun,) studied this question.
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