Title

Relationship between Ceo Compensation and Firm Performance: Empirical Evidence of Labor Market Norms

Department

Management & Entrepreneurship

Document Type

Article

Publication Date

7-1995

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.

Journal

International Journal of Organizational Analysis

Journal ISSN

1055-3185

Volume

3

Issue

3

First Page

268

Last Page

283

Digital Object Identifier (DOI)

10.1108/eb028832