TITLE

THE RELATIONSHIP BETWEEN EXECUTIVE COMPENSATION AND COMPANY'S GOVERNANCE OF NON-INTERNATIONAL COMPANIES

AUTHOR(S)
George, Nashwa
PUB. DATE
September 2011
SOURCE
Review of Business Research;2011, Vol. 11 Issue 4, p101
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This study examines the relationship between company's governance and cash compensation paid to the executives of non-international companies. The purpose is to test whether the salary and total cash compensation of the CEOs of such corporations are related to management percentage stock ownership, CEO as chair of the board, and percentage of outside members of the board. Using 591 company-year observations for 217 companies for the years 2007 to 2009, the results show that the management percentage stock ownership is negatively associated with the level of CEO salary and total cash compensation. In addition, the results indicate that companies with boards that have CEO as chair, pay a relatively higher amount of cash compensation to their executives. Finally, the results show that the higher the percentage of outside directors in the corporate board, the lower is the amount of CEO cash compensation.
ACCESSION #
69988915

 

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