Legitimacy of executive compensation plans: A preliminary study of French laypersons' acceptability

Abstract

Drawing on corporate social responsibility (CSR) theory we investigated laypersons acceptability of senior executive compensation plans. We identified base salary, performance related bonus, fringe benefits, pension plans and compensation protection as relevant factors of compensation plans. The method was an application of information integration theory (llT). Results are that high acceptability is a consequence of a low base salary in the optimal context provided by the other factors. Performance based bonuses did not play a very important role. Exploratory analysis finds two patterns of points of views among participants. Practical and theoretical implications of our study are drawn.