Elaine S. Pak

• Claudine Gartenberg and Elaine Pak (Under Review), Corporate Ownership and Employee Compensation. Abstract

  This study documents that firms with active corporate owners compensate their employees less than their peers. We analyze over 20 million employee records from 897 US firms and calculate pay differentials for employees in comparable positions across firms. The analysis yields three main insights. First, firms with external active owners (i.e., hedge funds and private equity firms) pay 3 to 5% less than other firms for comparable work. Second, these pay differentials correspond to differences in rent-sharing practices across these firms: firms with external active owners provide flatter incentives (i.e., lower bonus to base pay) and are less likely to grant equity to employees. Lastly, lower pay for comparable work does not correspond to higher profits for firms, even within industries that depend relatively more on cost management than on innovation. All together, these results are consistent with corporate owners having different orientations toward human capital, which in turn may reflect differing strategic approaches toward value creation and appropriation.

Past Courses

• MGMT1010 - Intro To Management

  We all spend much of our lives in organizations. Most of us are born in organizations, educated in organizations, and work in organizations. Organizations emerge because individuals can't (or don't want to) accomplish their goals alone. Management is the art and science of helping individuals achieve their goals together. Managers in an organization determine where their organization is going and how it gets there. More formally, managers formulate strategies and implement those strategies. This course provides a framework for understanding the opportunities and challenges involved in formulating and implementing strategies by taking a "system" view of organizations,which means that we examine multiple aspects of how managers address their environments, strategy, structure, culture, tasks, people, and outputs, and how managerial decisions made in these various domains interrelate. The course will help you to understand and analyze how managers can formulate and implement strategies effectively. It will be particularly valuable if you are interested in management consulting, investment analysis, or entrepreneurship - but it will help you to better understand and be a more effective contributor to any organizations you join, whether they are large, established firms or startups. This course must be taken for a grade.

Knowledge @ Wharton

• Former Levi’s CEO on Revitalizing a Brand — and the Right Way to Wash Jeans, Knowledge @ Wharton - 04/23/2024
• Why Is Financial Literacy Important? | Olivia S. Mitchell, Knowledge @ Wharton - 04/23/2024
• From Amazon to Uber: Why Platform Accountability Requires a Holistic Approach, Knowledge @ Wharton - 04/22/2024
• Can Intrapreneurship Help Close the Racial Wealth Gap?, Knowledge @ Wharton - 04/22/2024
• CJ Handron, Co-founder of Diamond Kinetics, Knowledge @ Wharton - 04/17/2024
• The Impact of AI on Financial Literacy | Michael Roberts, Knowledge @ Wharton - 04/16/2024
• Why Staying in Your 401(k) After Retirement Makes Sense, Knowledge @ Wharton - 04/15/2024
• How Social Insurance Drives Credit Card Debt, Knowledge @ Wharton - 04/15/2024
• Can Intrapreneurship Help Close the Racial Wealth Gap?, Knowledge @ Wharton - 04/12/2024
• Understanding the Value of Networks for Mothers Reentering the Workforce, Knowledge @ Wharton - 04/11/2024