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CEO influences and executive compensation: large firms vs. small firms

C. Joe Ueng (Assistant Professor of Finance, Department of Economics and Finance, Cameron School of Business, University of St. Thomas, Houston)
Donald W. Wells (Associate Professor of Accounting, Department of Accounting, Cameron School of Business, University of St. Thomas, Houston)
Juliana D. Lilly (Department of Management, School of Buisness, The University of Texas at Arlington, Arlington)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 August 2000

Abstract

Prior research has investigated determinants of CEO compensation. However, that research has been primarily limited to large firms. This study investigates the impact of CEO influence over the board of directors on CEO pay for both large and small firms. Additionally, other determinants of CEO pay for both large and small firms are examined. Results suggest that CEO influence over the board significantly affects CEO pay for large firms. However, we do not find the same evidence for small firms. Firm size is the prinmary factor of CEO pay for small firms. Evidence in this study suggests that CEO pay of large firms is mostly a function of CEO influence over the board, firm size and firm performance.

Keywords

Citation

Joe Ueng, C., Wells, D.W. and Lilly, J.D. (2000), "CEO influences and executive compensation: large firms vs. small firms", Managerial Finance, Vol. 26 No. 8, pp. 3-12. https://doi.org/10.1108/03074350010766800

Publisher

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MCB UP Ltd

Copyright © 2000, MCB UP Limited