Faculty Scholarship 1994 - Present

A Comprehensive Examination of the Determinants of Top Executive Compensation

This paper examines a comprehensive relationship between top executive compensation and CEO factors, Organizational Factors and Financal Factors. It empirically examines CEO's salary, bonus, and long-term compensation with respect to various organizational, financial and CEO factors such as corproate reputation, growth in workforce, firm size, ROE, Tobin's Q, CEO tenure and CEO stock Ownership. The results in general exhibit CEO's total compensation has a significant and positive relationship with CEO tenure, CEO stock ownership, Company reputation, Firm size, ROE, Tobin's Q. With respect to the CEO's salary, CEO's tenure, Firm size and Tobin's Q show a significantly positive relationship, while Firm size, Company reputation and Tobin's Q show a significant relationship with CEO bonus. For the long-term compensation, CEO stock ownership, firm size, company reputation and Tobin's Q exhibit a significantly positive relationship.