For CEOs, media appearances can boost paychecks
A new study shows that CEOs can get higher paychecks if they have media appearances. And a CNBC interview can bring in an increase of over $200,000, on average.
A new study, looking at 4,452 CEOs from 2,666 U.S. firms, as well as 104,129 news articles and 6,567 CNBC interviews, found that CEOs who appeared in CNBC interviews could expect their compensation to increase by $210,239 on average, notwithstanding firm performance and other mitigating factors.
Authors, Jingoo Kang of the Nanyang Business School and Andy Han Kim of the SKKU Business School, found the relationship between media appearances and compensation between 1997 and 2009 was strongest when the CEO was from a smaller firm or one that demonstrated a strong stock market performance in the wake of increased media visibility.
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“For highly visible CEOs of larger firms, media appearances will only have a small visibility-enhancing effect,” said Kang in a press release. “On the other hand, for CEOs of smaller companies who are less well known, media appearances will have a strong visibility-enhancing effect.”
For CEOs in larger, well-known companies that already have a high degree of visibility, the additional visibility-enhancing effect of media appearances was weaker. And when the CEO had a high equity ownership or was the founding CEO, that positive relationship disappeared, the study found.
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