DISCUSSION
The results of this study suggest that there is a separation
of symbol and substance in the composition of CEO
compensation contracts, and that behavioral theories
addressing the political and/or institutional use of
organizational symbols can predict the likelihood and extent
of that separation (Pfeffer, 1981; DiMaggio, 1988; Edelman,
1990; Friedlanda nd Alford,1 991). While institutionala nd
symbolic action theorists commonly invoke the separation of
substance and symbol in organizationaal ctivity,l arge-scale
empirical observation of this phenomenon is relatively rare.
Moreover, in raising the possibility of symbolic action in the
context of executive compensation, we use a theoretical
framework not yet considered in the existing behavioral and
economics-based literatureo n executive compensation