2013

Employee Compensation in Entrepreneurial Companies

Särtryck nr 2013:21

Författare: Ola Bengtsson och John R. M. HandÅr: 2013 Publikation: Journal of Economics and Management Strategy Årgång (nr): 22 (2) Sidor: 312–340
Artikeln online (behörighet kan krävas)
Preliminär version


Despite the central role played by human capital in entrepreneurship, little is known about how employees in entrepreneurial firms are compensated and incentivized. We address this gap in the literature by studying 18,935 non-CEO compensation contracts across 1,809 privately held venture-backed companies. Our key finding is that employee compensation varies with the degree to which VCs versus founders control the business. We show that relative to founder-controlled firms, VC-controlled firms pay their hired-on (i.e., nonfounder) employees higher cash salaries, provide stronger cash and equity incentives, and have more formal pay policies in place. We also observe that founder employees earn less cash pay and face weaker cash incentives than do hired-on employees, but have stronger equity incentives. We propose that the compensation differences we identify arise because the preferences and capabilities of controlling shareholders significantly influence the quality of the human capital attracted and retained by the firm.


Referens:
Bengtsson, Ola och John R. M. Hand (2013), "Employee Compensation in Entrepreneurial Companies". Journal of Economics and Management Strategy 22(2), 312–340.

Aktuell forskare

Niclas Berggren

Forskningsområden: Institutionell och politisk ekonomi; tillit, tolerans och religion; skönhetens betydelse i politiken.

Några av de frågor Niclas Berggren försöker besvara i sin forskning:

  • Hur påverkar t.ex. tillit, tolerans och religion ekonomins funktionssätt?
  • Finns det ett samband mellan graden av marknadsekonomi och sociala variabler (som tillit och tolerans)?

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