Compensation committee presence and their effect on CEO salaries : Measuring the impact of compensation committees in firms listed on Oslo Stock Exchange and Oslo Axess
Abstract
This thesis explores the relationship between compensation committee presence
and chief executive officer salaries in firms listed on Oslo Stock Exchange and Oslo
Axess. Using a self-collected, unbalanced panel data sample consisting of 76 companies
spanning from 2007 to 2015, we have gathered observations of CEO salaries and
compensation committee presence. We have applied standard econometric methods
to measure the e↵ect of compensation committees and incentive-based salaries. Our
results suggest that firm size and owner concentration are more likely to impact proportion
of incentive-based salary than compensation committee presence. Moreover,
larger companies are found to be more likely to have implemented compensation
committees. We find that the proportion of incentive-based pay has a significant
positive impact on the size of CEO remuneration, while we find partial support for
an e↵ect of compensation committees presence on the size of CEO pay.
Description
Master's thesis Business Administration BE501 - University of Agder 2017