To read the full version of this content please select one of the options below:

Does Corporate Misconduct Affect the Future Compensation of Alumni Managers? *

Employee Inter- and Intra-Firm Mobility

ISBN: 978-1-78973-550-5, eISBN: 978-1-78973-549-9

ISSN: 0742-3322

Publication date: 15 July 2020

Abstract

Using data from a top-five global executive placement firm, the authors explore how an organization's financial misconduct may affect pay for former employees not implicated in wrongdoing. Drawing on stigma theory, they hypothesize that although such alumni did not participate in the financial misconduct and they had left the organization years before the misconduct, these alumni experience a compensation penalty. The stigma effect increases in relation to the job function proximity to the misconduct, recency of the misconduct, and an employee's seniority. Collectively, results suggest that the stigma of financial misconduct could reach alumni employees and need not be confined to executives and directors that oversaw the organization during the misconduct.

Citation

Groysberg, B., Lin, E. and Serafeim, G. (2020), "Does Corporate Misconduct Affect the Future Compensation of Alumni Managers? * ", Tzabbar, D. and Cirillo, B. (Ed.) Employee Inter- and Intra-Firm Mobility (Advances in Strategic Management, Vol. 41), Emerald Publishing Limited, Bingley, pp. 293-321. https://doi.org/10.1108/S0742-332220200000041020

Publisher

:

Emerald Publishing Limited

Copyright © 2020 Emerald Publishing Limited