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- W2891031541 abstract "This paper shows that top management structures in large US firms radically changed since the mid-1980s. While the number of managers reporting directly to the CEO doubled, the growth was driven primarily by managers rather than general managers. Using panel data on senior management positions, we explore the relationship between changes in executive team composition, firm diversification, and IT investments – which arguably alter returns to exploiting synergies through corporate-wide coordination by managers in headquarters. We find that the number of managers closer to the product (product functions i.e., marketing, R&D) increase as firms focus their businesses, while the number of managers farther from the product (administrative functions i.e., finance, law, HR) increase with IT investments. Finally, we show that general manager pay decreases as managers join the executive team suggesting a shift in activities from general to managers – a phenomenon we term functional centralization." @default.
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- W2891031541 date "2012-01-01" @default.
- W2891031541 modified "2023-10-03" @default.
- W2891031541 title "Who Lives in the C-Suite? Organizational Structure and the Division of Labor in Top Management" @default.
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- W2891031541 doi "https://doi.org/10.2139/ssrn.2179524" @default.
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