Determinants of CEO compensation in Pakistan from 2007 to 2009
Abstract
Most studies of the determinants of executive compensation are based on the experience of
developed countries. This paper examines the relationship between firm size, firm
performance and board composition on CEO compensation, in the context of an emerging and
developing economy of Pakistan. Data for 83 listed firms from Lahore stock exchange,
Pakistan has been used for 2007 to 2009. The findings show that firm size is one of the major
determining factors of CEO compensation rather than performance. A family recruited CEO
has a negative and significant effect upon the CEO compensation. In this study we also look
at a number of other variables like board size, percentage of independent director, CEO
duality and firm performance; but these variables do not significantly affect CEO
compensation in companies in Pakistan.
Key words: CEO Compensation, Board size, Duality, Ownership, Independent
directors, Firm performance, Pakistan.
Description
Masteroppgave i økonomi og administrasjon - Universitetet i Agder 2010