Top human resources executives and CEO compensation

Natalie Kyung Won Kim; Sewon Kwon; Jae Yong Shin

doi:10.1016/j.jaccpubpol.2025.107358

Top human resources executives and CEO compensation

Natalie Kyung Won Kim, Sewon Kwon, Jae Yong Shin

Division of Business Administration

Research output: Contribution to journal › Article › peer-review

Abstract

We examine the role of top HR executives in CEO compensation decisions using a sample of Standard & Poor's (S&P) 1500 firms from 2006 to 2017. Our findings show that appointing a top HR executive is associated with higher CEO compensation and a higher CEO pay slice (CPS) among named executive officers. We also investigate ex post adjustments to the earnings used in annual bonus plans as a channel through which top HR executives influence CEO compensation. Our findings indicate that firms with a top HR executive make more such adjustments and are more likely to favor the CEO with upward adjustments. These effects are especially pronounced for co-opted HR executives—those hired after the CEO. Overall, our results are consistent with a rent extraction perspective in setting CEO compensation.

Original language	English
Article number	107358
Journal	Journal of Accounting and Public Policy
Volume	54
DOIs	https://doi.org/10.1016/j.jaccpubpol.2025.107358
State	Published - 1 Nov 2025

Bibliographical note

Publisher Copyright:
© 2025 Elsevier Inc.

Keywords

CEO compensation
Chief Human Resources Officer
HR executives

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10.1016/j.jaccpubpol.2025.107358

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title = "Top human resources executives and CEO compensation",

abstract = "We examine the role of top HR executives in CEO compensation decisions using a sample of Standard \& Poor's (S\&P) 1500 firms from 2006 to 2017. Our findings show that appointing a top HR executive is associated with higher CEO compensation and a higher CEO pay slice (CPS) among named executive officers. We also investigate ex post adjustments to the earnings used in annual bonus plans as a channel through which top HR executives influence CEO compensation. Our findings indicate that firms with a top HR executive make more such adjustments and are more likely to favor the CEO with upward adjustments. These effects are especially pronounced for co-opted HR executives—those hired after the CEO. Overall, our results are consistent with a rent extraction perspective in setting CEO compensation.",

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AU - Shin, Jae Yong

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N2 - We examine the role of top HR executives in CEO compensation decisions using a sample of Standard & Poor's (S&P) 1500 firms from 2006 to 2017. Our findings show that appointing a top HR executive is associated with higher CEO compensation and a higher CEO pay slice (CPS) among named executive officers. We also investigate ex post adjustments to the earnings used in annual bonus plans as a channel through which top HR executives influence CEO compensation. Our findings indicate that firms with a top HR executive make more such adjustments and are more likely to favor the CEO with upward adjustments. These effects are especially pronounced for co-opted HR executives—those hired after the CEO. Overall, our results are consistent with a rent extraction perspective in setting CEO compensation.

AB - We examine the role of top HR executives in CEO compensation decisions using a sample of Standard & Poor's (S&P) 1500 firms from 2006 to 2017. Our findings show that appointing a top HR executive is associated with higher CEO compensation and a higher CEO pay slice (CPS) among named executive officers. We also investigate ex post adjustments to the earnings used in annual bonus plans as a channel through which top HR executives influence CEO compensation. Our findings indicate that firms with a top HR executive make more such adjustments and are more likely to favor the CEO with upward adjustments. These effects are especially pronounced for co-opted HR executives—those hired after the CEO. Overall, our results are consistent with a rent extraction perspective in setting CEO compensation.

KW - CEO compensation

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KW - HR executives

UR - https://www.scopus.com/pages/publications/105015348865

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DO - 10.1016/j.jaccpubpol.2025.107358

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JO - Journal of Accounting and Public Policy

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ER -

Top human resources executives and CEO compensation

Abstract

Bibliographical note

Keywords

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