The Impact of Customer Satisfaction on CEO Bonuses
Journal of the Academy of Marketing Science, Forthcoming
Posted: 4 Nov 2010
Date Written: March 1, 2010
Abstract In this study, we build on prior research in marketing and executive compensation to show that customer satisfaction is a significant determinant of CEO bonuses. Findings demonstrate that the success of CEOs in managing customer satisfaction has a direct, personal, and economic impact in the form of their annual bonus awards. Our study contributes to research on the use of customer satisfaction information, marketing accountability, and marketing’s board level relevance. Our research also extends marketing theory by pointing to a previously unexamined role for marketing performance metrics.
Keywords: CEO bonuses, Customer satisfaction
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