Faculty Scholarship 1994 - Present

A Cross-Sectional Study of the Determinants of Japanese CEO Compensation

This paper investigates the determinants of the Japanese CEO's compensation. It empirically examines the relationship between CEO compensation and various organizational and performance factors such as structure (complexity), power, monitoring, and performance. The results suggest that the Japanese CEOs' compensation has a significant and positive relationship with Relative Market share, CEO tenure, institutional ownership and ROE in 1988. In 1992, Japanese CEOs' compensation shows a significantly positive relationship with Relative Market Share, Diversification, CEO tenure, and ROE.