Elephant or Donkey? How Board Political Ideology Impacts CEO Pay

6261650491_0cd6c701bb_zHow much does directors’ political ideologies impact CEO compensation? Perhaps more than you might think–according to a recent paper published in Administrative Science Quarterlyentitled “The Elephant (or Donkey) in the Boardroom: How Board Political Ideology Affects CEO Pay” from authors Abhinav Gupta and Adam J. Wowak, conservative and liberal boards differ in not only how much they pay CEOs, but how they adjust CEO compensation based upon company performance. The abstract for the paper:

We examine how directors’ political ideologies, specifically the board-level average of how conservative or liberal directors are, influence boards’ decisions about CEO compensation. Integrating research on corporate governance and political psychology, we theorize that conservative and liberal boards will differ in their prevailing beliefs about the appropriate amounts CEOs should be paid and, relatedly, the extent to which CEOs should be rewarded or penalized for recent firm performance. Using a donation-based index to measure the political ideologies of Current Issue Coverdirectors serving on S&P 1500 company boards, we test our ideas on a sample of over 4,000 CEOs from 1998 to 2013. Consistent with our predictions, we show that conservative boards pay CEOs more than liberal boards and that the relationship between recent firm performance and CEO pay is stronger for conservative boards than for liberal boards. We further demonstrate that these relationships are more pronounced when focusing specifically on the directors most heavily involved in designing CEO pay plans—members of compensation committees. By showing that board ideology manifests in CEO pay, we offer an initial demonstration of the potentially wide-ranging implications of political ideology for how corporations are governed.

You can read “The Elephant (or Donkey) in the Boardroom: How Board Political Ideology Affects CEO Pay” from Administrative Science Quarterly free for the next two weeks by clicking here. Want to stay up to date on all of the latest research published by Administrative Science QuarterlyClick here to sign up for e-alerts!

*Image attributed to DonkeyHotey (CC)

Happy Election Day from Management INK! Did you vote yet?

Book Review: Beyond the Beat: Musicians Building Community in Nashville

Daniel B. Cornfield : Beyond the Beat: Musicians Building Community in Nashville.Princeton, NJ: Princeton University Press, 2015. 218 pp. $35.00, hardcover.

Amir Goldberg of Stanford Graduate School of Business recently published a book review in Administrative Science Quarterly. From the book review:

Drawing on rich interviews with 75 music professionals in Nashville, Cornfield develops both a typology of artist activism and a theory of its genesis. He distinguishes among three types of artist activists: “enterprising artists” produce their own and others’ music and mentor early-career artists; “artistic social entrepreneurs” create social spaces, such as schools and performance venues, that promote professional development; and “artist advocates” reshape unions to meet the needs of independent musicians. The majority of the book—four out of seven chapters—is dedicated to deep introductions of 16 individuals who exemplify these types. From Tina, a Nashville native in her late teens who is dedicated to her Asian–European multiethnic identity and her musical authenticity, to Rick, a union activist who has lived in Nashville since the 1950s, we learn about these music professionals’ artistic visions, audience orientations, and beliefs about risk.

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These individual perceptions, contends Cornfield, explain the emergence of artist activism but have thus far been largely neglected by a literature overly focused on structural and institutional factors. Members of the artist community who conceive of success as artistic freedom and who think of their peers as their audiences, he argues, are most likely to become artist activists. How they understand risk—whether as attributable to the individual, a product of interpersonal relationships, or a property of the market—determines what type of activists they will become.

This typology and theory of artistic activism is both elegant and useful. It provides the analytical clarity necessary to disentangle what would otherwise seem like an organic hodgepodge of loosely interdependent musical professionals into its constituent components, and it points to the necessary conditions for the emergence of artist activism. As Cornfield concludes, cities dense with music producers and consumers are more susceptible to activism-oriented artists coalescing into a community of the kind that emerged in Nashville. I wonder, however, where the individual orientations that catalyze artistic activism come from and whether they precede activism, as Cornfield suggests, or cohere retroactively as narratives that activists tell themselves about their experiences. If the latter, then other factors are necessary to piece together the puzzle of Nashville’s musical community.

You can read the full book review published in Administrative Science Quarterly free for the next two weeks by clicking here. Want to keep current on all of the latest research published by Administrative Science QuarterlyClick here to sign up for e-alerts! You can also follow the journal on Twitter–click here to read recent tweets from Administrative Science Quarterly!

You can also read additional blog content for Administrative Science Quarterly content from the ASQ Blog, as well as Editor Henrich Greve’s blog, Organizational Musings.

Book Review: Secrecy at Work: The Hidden Architecture of Organizational Life

Cover of Secrecy at Work by Jana Costas and Christopher Grey  Jana Costas, Christopher Grey : Secrecy at Work: The Hidden Architecture of Organizational Life. Stanford, CA: Stanford University Press, 2016. 202 pp. $27.95, paper.

Blake E. Ashforth of Arizona State University Tempe recently contributed a book review in Administrative Science QuarterlyAn excerpt from the book review:

In their provocative new book, Jana Costas and Christopher Grey focus not on organizational secrets per se, the content that is concealed, but on organizational secrecy, “the processes through which secrets are kept” (p. 7). Note the plural in “processes,” as the dynamics and their ramifications can become quite complex. The authors’ goal, which they amply meet, is to bring secrecy out from the shadows, as it were, and convince the reader that it warrants far more scholarly Current Issue Coverattention as both an important topic in its own right and as a complement to management topics such as leadership, organizational change, and politics.

The book’s subtitle, “The Hidden Architecture of Organizational Life,” speaks to their core argument: that secrecy explicitly and implicitly creates a compartmentalized structure linked by narrow corridors, a machinery for surveillance and monitoring, and organizational norms and professional ethics codes, all coupled with processes for sharing and not sharing information. “Like electricity or water in buildings, secret knowledge must always be penned in to proscribed places and forced to flow around prescribed routes” (p. 140).

You can read the rest of the book review from Administrative Science Quarterly free for the next two weeks by clicking here. Want to keep current on all of the latest research published by Administrative Science QuarterlyClick here to sign up for e-alerts! You can also follow the journal on Twitter–click here to read recent tweets from Administrative Science Quarterly!

You can also read additional blog content for Administrative Science Quarterly content from the ASQ Blog, as well as Editor Henrich Greve’s blog, Organizational Musings.

 

Read the Latest Issue of Administrative Science Quarterly!

Current Issue CoverThe September 2016 issue of Administrative Science Quarterly is now published online and can be accessed free for the next 30 days! The September issue includes a 60th anniversary essay from Karl E. Weick of the University of Michigan, addressing the experience of organizational inquiry. The abstract for the essay:

Jerry Davis’s (2015) question “What is organizational research for?” is ill-served by the narrow answer “settled science.” Constraints of comprehension may give the illusion that organizational research represents settled science. But the experience of inquiring actually comprises a greater variety of actions that increase the meaning of present research experience and the contributions it makes. I discuss acts of conjecture, differentiation, attachment, affirmation, complication, discernment, interruption, and representation to illustrate that meaningful contributions are generated by actions associated with connecting perceptions to concepts. ASQ’s 60th anniversary is an opportune time to make these interim contributions more explicit.

In addition, the articles in the September issue address topics like whitened resumes, forecasting the success of new ideas, and combining the logics of industry and culture can lead to new possibilities for organizations. You can read the latest issue free for the next 30 days by clicking here.

Want to keep up with all of the latest Administrative Science Quarterly publications? Click here to sign up for e-alerts! You can also find more Administrative Science Quarterly content on the ASQ Blog here, as well as the Organizational Musings blog from Editor Henrich Greve here.

Visit SAGE @ AOM 2016!

AOMThe Academy of Management 2016 Annual Meeting is going on now in Anaheim! This year’s theme, Making Organizations Meaningful, is all about the extensive impact of an organizations purpose, value, and worth. Organizational meaningfulness is a rich area of research–organizations communicate meaning across a wide variety of mediums to a wide variety of audiences, with unique goals in mind. You can find the full program for this year’s conference, including the scheduled events that will speak to organizational meaningfulness, by clicking here.

If you’re attending AOM, don’t forget to stop by SAGE’s booths (, where we’ll have the latest scholarly research from  Administrative Science Quarterly, Journal of Management, Family Business Review and other top-tier SAGE journals, as well as plenty of friendly faces willing to answer all your publishing inquiries.

Whether or not you’ll be able to attend this year’s Academy of Management Annual Meeting, please feel free to peruse the latest from SAGE’s management and business journals represented at AOM:

ASQ_v59n3_Sept2014_cover.inddAdministrative Science Quarterly This top-tier journal regularly publishes the best theoretical and empirical papers based on dissertations and on the evolving and new work of more established scholars, as well as interdisciplinary work in organizational theory, and informative book reviews.

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Business & Society
In this fast-growing, ever-changing, and always challenging field of study, BAS is the only peer-reviewed scholarly journal devoted entirely to research, discussion, and analysis on the relationship between business and society.

 

FBR_C1_revised authors color.inddFamily Business Review provides a scholarly platform devoted exclusively to exploration of the dynamics of family-controlled enterprise, including firms ranging in size from the very large to the relatively small. FBR is focused not only the entrepreneurial founding generation, but also on family enterprises in the 2nd and 3rd generation and beyond, including some of the world’s oldest companies.

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Group and Organization Management
publishes a broad range of articles, including data-based research articles, research review reports, evaluation studies, action research reports, and critiques of research. In addition, GOM brings you articles examining a wide range of topics in organizations from an international and cross-cultural perspective.

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The Journal of Applied Behavioral Science JABS is continually breaking ground in its exploration of group dynamics, organization development, and social change, providing scholars the best in research, theory, and methodology, while also informing professionals and their clients.

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Journal of Leadership and Organizational Studies produces high-quality, peer-reviewed research articles on leadership and organizational studies, focusing in particular on the intersection of these two areas of study.

 

Current Issue CoverJournal of Management is committed to publishing scholarly empirical and theoretical research articles that have a high impact on the management field as a whole and cover such field as business strategy and policy, entrepreneurship, human resource management, organizational behavior, organizational theory, and research methods.

JME_72ppiRGB_powerpointJournal of Management Education is dedicated to enhancing teaching and learning in the management and organizational disciplines. JME’s published articles reflect changes and developments in the conceptualization, organization, and practice of management education.

JMI_72ppiRGB_powerpointJournal of Management Inquiry is a leading journal for scholars and professionals in management, organizational behavior, strategy, and human resources. JMI explores ideas and builds knowledge in management theory and practice, with a focus on creative, nontraditional research, as well as, key controversies in the field.

07ORM13_Covers.inddOrganizational Research Methods  brings relevant methodological developments to a wide range of researchers in organizational and management studies and promotes a more effective understanding of current and new methodologies and their application in organizational settings.

Book Review: Technology Choices: Why Occupations Differ in Their Embrace of New Technology

Technology ChoicesDiane E. Bailey, Paul M. Leonardi : Technology Choices: Why Occupations Differ in Their Embrace of New Technology. Cambridge, MA: MIT Press, 2015. 288 pp.$32.00/£22.95, cloth.

Asaf Darr of University of Haifa recently reviewed Technology Choices: Why Occupations Differ in Their Embrace of New Technology in Administrative Science Quarterly. An excerpt from the book review:

Bailey and Leonardi are leading ethnographers of work who acquired their reputations through meticulous fieldwork, comparative research designs, and insightful use of general themes emerging from the data to develop middle-range theory. All these qualities are demonstrated in this book, which summarizes a decade of research into the engineering profession, with an emphasis on product design work. The book compares the work of automotive design engineers, software engineers, and structural engineers; the technologies they choose to employ in their daily work; Current Issue Coverand the division of labor that structures their work.

The book contributes to organizational literature in at least three meaningful ways. First, it provides an important description of design engineering work, highlighting its heterogeneity. Second, it identifies key factors that shape the choices engineering specialists make regarding their work tools. Third, it lays the grounds for a theory that can explain and even predict why and how occupations make decisions about the technologies they will use in their daily work. This theory is grounded in core elements of occupations, such as distinct skills and local divisions of labor, as well as in the surrounding environment, where variables such as market forces and institutional factors influence technological choice.

You can read the rest of the book review from Administrative Science Quarterly by clicking here. Want to stay up to date on all of the latest content published by Administrative Science QuarterlyClick here to sign up for e-alerts!

Does Social Activism Disrupt Corporate Political Activity?

The use and efficacy of corporate political activity has been well researched in the past, but a new paper published in Administrative Science Quarterly from authors Mary-Hunter McDonnell and Timothy Werner is taking a new perspective of corporate political activity. The paper, entitled “Blacklisted Businesses: Social Activists’ Challenges and the Disruption of Corporate Political Activity,” focuses on how large scale activist protests disrupt corporations’ ability to influence political stakeholders. Mary-Hunter McDonnell dives into the findings of the paper in the video below:

The abstract for the paper:

This paper explores whether and how social activists’ challenges affect politicians’ willingness to associate with targeted firms. We study the effect of public protest on corporate political activity using a unique database that allows us to analyze empirically the Current Issue Coverimpact of social movement boycotts on three proxies for associations with political stakeholders: the proportion of campaign contributions that are rejected, the number of times a firm is invited to give testimony in congressional hearings, and the number of government procurement contracts awarded to a firm. We show that boycotts lead to significant increases in the proportion of refunded contributions, as well as decreases in invited congressional appearances and awarded government contracts. These results highlight the importance of considering how a firm’s sociopolitical environment shapes the receptivity of critical non-market stakeholders. We supplement this analysis by drawing from social movement theory to extrapolate and test three key mechanisms that moderate the extent to which activists’ challenges effectively disrupt corporate political activity: the media attention a boycott attracts, the political salience of the contested issue, and the status of the targeted firm.

You can read “Blacklisted Businesses: Social Activists’ Challenges and the Disruption of Corporate Political Activity” from Administrative Science Quarterly free for the next two weeks by clicking here. Want to keep current on all of the latest research from Administrative Science QuarterlyClick here to sign up for e-alerts!