Pay me with fame, not mammon: CEO narcissism, compensation, and media coverage

•Narcissistic CEOs crave for admiration and attention.•Narcissistic CEOs are willing to sacrifice compensation for media coverage.•Firms with high media coverage exploit narcissistic CEOs by reducing compensation. We show that narcissistic CEOs are willing to sacrifice compensation for media coverag...

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Bibliographic Details
Published inFinance research letters Vol. 46; p. 102495
Main Authors Aabo, Tom, Jacobsen, Mikkel Lilholt, Stendys, Kasper
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.05.2022
Subjects
Behavioral corporate finance
CEO compensation
CEO narcissism
Media coverage
G40
CEO narcissism
Media coverage
G32
G34
Behavioral corporate finance
CEO compensation
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Summary:•Narcissistic CEOs crave for admiration and attention.•Narcissistic CEOs are willing to sacrifice compensation for media coverage.•Firms with high media coverage exploit narcissistic CEOs by reducing compensation. We show that narcissistic CEOs are willing to sacrifice compensation for media coverage. The results of our study imply that firms with high media coverage exploit the narcissistic CEO’s desire for attention and acclaim by granting such a CEO a smaller monetary compensation. Our findings are important in understanding the interplay between CEO narcissism, CEO compensation, and the firm’s media coverage. Our results are statistically significant, robust, and economically meaningful.
ISSN:1544-6123
1544-6131
DOI:10.1016/j.frl.2021.102495