Article
Chief purchasing officer compensation
International Journal of Physical Distribution & Logistics Management
(2003)
Abstract
It is increasingly accepted that the chief purchasing officer (CPO), as the highest ranking member of the purchasing and supply management (PSM) function, is a resource that can add strategic value to the firm. Delineating the organizational and human capital factors that determine CPO compensation packages can help firms maintain their competitive advantage by attracting and retaining talent in this position. Although an extensive literature base examines executive compensation, such research at levels below the CEO is sparse. Based on the rich literature discussing executive compensation as well as a survey of Fortune 500 CPOs, examines the influence of organizational and human capital on CPO compensation from a resource‐based view of the firm. The organizational capital characteristics of annual sales, purchases as a percent of sales, and the number of reporting levels between the CPO and CEO were found to influence CPO compensation significantly. Somewhat surprisingly, CPO age was the only human capital factor of those tested (years in PSM, education level, CPM certifications) that significantly influenced compensation.
Keywords
- purchasing,
- managers,
- compensation,
- organizational development,
- human capital,
- human resourcing
Disciplines
Publication Date
August 1, 2003
DOI
10.1108/09600030310492751
Citation Information
George A. Zsidisin, Jeffrey A. Ogden, Thomas E. Hendrick and Mark A. Clark. "Chief purchasing officer compensation" International Journal of Physical Distribution & Logistics Management Vol. 33 Iss. 6 (2003) p. 477 - 499 Available at: http://works.bepress.com/george-zsidisin/27/