RELATIONSHIP BETWEEN CEO COMPENSATION AND FIRM PERFORMANCE: EMPIRICAL EVIDENCE OF LABOR MARKET NORMS
The International Journal of Organizational Analysis
ISSN: 1055-3185
Article publication date: 1 March 1995
Abstract
The study supports the existence of a relationship between components of CEO compensation and firm performance. On average, the sampled firms can be characterized as having high levels of CEO cash compensation and high ROE, as well as high levels of stock option values and high market returns. These between‐firm effects suggest the existence of labor market norms linking executive compensation with firm performance. CEO cash compensation was also strongly influenced by CEO age and firm size.
Citation
Veliyath, R. and Bishop, J.W. (1995), "RELATIONSHIP BETWEEN CEO COMPENSATION AND FIRM PERFORMANCE: EMPIRICAL EVIDENCE OF LABOR MARKET NORMS", The International Journal of Organizational Analysis, Vol. 3 No. 3, pp. 268-283. https://doi.org/10.1108/eb028832
Publisher
:MCB UP Ltd
Copyright © 1995, MCB UP Limited