A study of CEOs in the United States found that social class background affects how boards interpret performance. CEOs from lower-class backgrounds received higher initial compensation and greater rewards when firms performed well, but faced steeper pay cuts and higher dismissal risk when performance weakened, compared with higher-class counterparts. The same background that produced recognition during strong results made shortfalls more readily read as underperformance.
The research, using CEO social class data from 1992 to 2018 supplemented with board interviews, was published in Strategic Management Journal on 6 October 2026.
Source: Strategic Management Journal, 2026-10-06.