Faculty Scholarship 1994 - Present

Determinants of Executive Compensation: Corporate Reputation and Firm Performance

Past research has used the Fortune Most Admired Companies index as a proxy for such difficult-to-measure variables as corporate reputation [18] [19], corporate social responsibility [12] [35], and stakeholder orientation [8] [42]. However, Fryxell & Wang [21] question the use of the Fortune index for such variables, citing the index's close relationship with and possible dependence on financial performance measures. The present study takes exception to such a bold conclusion and presents evidence of the usefulness of the Fortune index as a measure of corporate reputation.