The main finding of Main et al. (1993) is that firm performance is positively associated with executive pay dispersion. In a similar vein, Bognanno (2001) reports that the CEO pay rises with the number of vice
presidents competing for the top position. However, he finds that inconsistent with the
tournament prediction, firms do not maintain short-term promotion incentives, as longer
time in position prior to promotion reduces the effect of pay increase from the promotion.