Benchmarking of pay components in CEO compensation design

Grinstein Yaniv, Beni Lauterbach, Revital Yosef

Research output: Contribution to journalArticlepeer-review


We document an important element of CEO compensation design – benchmarking of the pay components. Analyzing a panel of CEO compensation data entailing 1451 S&P 1500 firms during 2006–2019, we find that: 1) Component-of-pay benchmarking more effectively explains CEO compensation design than does total compensation benchmarking; 2) Most pay components exhibit similar benchmarking behavior; the only exception is the milder adjustment of salary to that of peers; 3) Benchmarking of the weight of each component in total compensation is also apparent. Our results suggest that benchmarking of pay components is an economically fundamental part of CEO compensation design.
Original languageEnglish
Article number102308
Number of pages12
JournalJournal of Corporate Finance
StatePublished - 2022


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