Does lobbying of firms complement executive networks in determining executive compensation?

In this paper we predict and find that lobbying activities of firms can complement executive networks in determining executive compensation. Firm of all size, after considering market competition as a governance mechanism prefer to consider lobbying as a mean of networking along with the executive level networking to determine the executive compensation. The empirical implication of the study provides guidance to researchers who must consider lobbying along with executive networks in determining the executive compensation. The composite theoretical underpinning and the importance of information flow through lobbying activities of firms will be an important insight for the policy makers involved in determining executive compensation.