What Drives the Mismatch in CEO Value Creation and Value Capture?

We examine the relationship between contribution of CEOs to value creation and their pay. Findings demonstrate that this relationship is not as aligned as predicted by traditional strategic human capital literature. We identify CEOs and firms where this relationship is misaligned and test some determinants of this misalignment. This study is among the first to directly examine the relationship between variation in managerial value creation and managerial value capture.