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Professor Joanna L.Y. Ho
Department of Accounting
Paul Merage School of Business
University of California, Irvine

We examine the relation between ownership concentration by family and institutional owners and the disparity in pay between the CEO and the median employee in a firm (pay disparity). We document that family and dedicated institutional ownership are negatively related, whereas transient institutional ownership is positively related, to the pay disparity. We also find that in a more research and development intensive environment, firms with greater family ownership have lower pay disparity, whereas firms with greater transient institutional ownership have higher pay disparity. These findings contribute to the literature by showing that the relation between large shareholder ownership and pay disparity.