The Influence of Compensation on Leader Human Capital and Unit Performance

摘要

Research suggests that more talented and competent leaders of organizations should receive higher compensation in an effort to improve organizational performance. Does this actually work out? Using well-compensated, head coaches of NCAA Football Bowl Subdivision teams as a sample, this study tested several hypotheses concerning the relationships among leader compensation (coaches' total comp), leader human capital (number of games as head coach and winning percentages through 2010), and organization performance (winning percentage 2011). Overall, compensation was a more significant predictor of performance than experience as a head coach, and the coaches' human capital partially mediated the compensation-performance relationship.