Executive Compensation: An Indonesian Case

Abstract:     
This study aims to define the factors that determine the amount of compensation for corporate executives. The factors used on this study are the report and market-based financial performance, institutional ownership, firm size, and debt. This study used the company data listed on the LQ-45 Index Indonesian Stock Exchange from the period of 2007-2009. The result shows that during that global economic crisis period, the firm size was the only factor that produced significant impact in determining the amount of compensation for corporate executives, while other factors did not produce significant impact.

Keywords: Executive Compensation, Financial Performance, Institutional Ownership, Firm Size, Leverage

JEL Classification: G10, D30, J33

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