Managerial talent, pay, and age

Abstract

The present investigation examines the types of traits managers manifest which firms reward with higher pay, and whether age moderates the relationship between managerial talent and pay. Two hundred ninety-three middle managers, drawn from five large corporations, were assessed on the traits of intelligence, supervisory ability, initiative, self-assurance, and achievement. It was found that all five of the managerial traits were differentially rewarded depending on the age of the managers. The relationships between pay and measures of managerial talent were generally positive for younger managers, and gradually became lower and finally turned negative for older managers. The results are discussed in terms of organizational reward structures.