Performance and Individual Characteristics as Predictors of Pay Levels: The Case of the Italian 'Serie A'

Recent years have seen the development of a growing literature, and corresponding managerial practices, about compensation measurement and management. On the other hand, there has also been the emergence of unexpected salary dynamics that seem to escape from any managerial control. The debate on salary dynamics is very much to the fore when it comes to the sport industry, especially football. This paper aims to analyse some of the determinants of Italian soccer players’ salaries. In so doing, it analyses data collected from the 20012002 and 20022003 Serie A seasons, adopting a standard multiple regression model. Our findings show how the dynamics of players’ salaries in the Serie A strongly fits with the nontraditional pay plans (strongly with the pay-for-performance approach and partially with the skill-based one), while the traditional pay plan based on the job held by an individual seems not to fit.