Who affects CEO compensation? Firm performance, ownership structure, and board diversity

Ahmed Bouteska et al.

Journal of High Technology Management Research2024https://doi.org/10.1016/j.hitech.2024.100501article
AJG 2
Weight
0.74

What the paper says

This paper examines the relation among firm performance, ownership structure, and board gender diversity on the firm board and CEO compensation, i.e., total compensation, salary-based compensation, and bonus-based compensation. The paper employs a unique dataset from S&P 1500 firms from 2007 to 2018. The empirical results suggest that large and diversified boards are the main determinants of CEO compensation, in line with the theory. Moreover, longer-tenured CEOs who also hold the board chairperson position receive greater compensation and bonuses than their peers. In addition, a firm financial performance affects CEO compensation, with the influence being more pronounced in the CEO's total compensation. This paper adds to the existing literature on CEO compensation, corporate governance, and board attributes, especially when revealing empirical support for the link between board diversity and CEO compensation against a strong demand for sound corporate governance practices.

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https://doi.org/https://doi.org/10.1016/j.hitech.2024.100501

Or copy a formatted citation

@article{ahmed2024,
  title        = {{Who affects CEO compensation? Firm performance, ownership structure, and board diversity}},
  author       = {Ahmed Bouteska et al.},
  journal      = {Journal of High Technology Management Research},
  year         = {2024},
  doi          = {https://doi.org/https://doi.org/10.1016/j.hitech.2024.100501},
}

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Who affects CEO compensation? Firm performance, ownership structure, and board diversity

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Evidence weight

0.74

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact1.00 × 0.4 = 0.40
M · momentum0.78 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.