The Role of Celebrity and Status in the Performance–Pay Relationship: Evidence from the ‘Big Five’ European Football Leagues

Abstract

This study explores the reasons behind the existence of frequent mismatches between performance of individuals in organisations and their salary, with a specific focus on contexts where actors or employees are highly visible and representative of organisations. We argue that two intangible assets – celebrity and status – might affect the intensity of the link between individual performance and pay levels. Using a panel data set of professional footballers from the top five European leagues, we find that there is a positive association between players’ performance in one period (season) and their salary in the subsequent season, and that this relationship is negatively moderated by both the players’ celebrity and status. Theoretical contributions and managerial implications are discussed, along with the generalisability of the results to other settings.

Keywords

• performance
• pay
• status
• celebrity
• ‘big five’ european football leagues