CEO and Executive Director Remuneration and Firm Performance

Abstract

Purpose – This paper develops a discussion looking at whether CEO and Executive Director Remuneration have an impact on Firm Performance.

Design/methodology/approach – This study entails Australia, The United States of America and The United Kingdom.

The data collected is from public listed corporations from 2000 – 2012* (calculated with a 3 year rolling average) for the development of excel charts.

These developed models are constructed to test relationships between dependant and independent variables in line with research questions and hypotheses.

Findings – The findings found that there is a high correlation using Excel Charting between CEO/Executive Director Remuneration and Net Profit after Tax.

Originality/value – The paper will be of vital importance to other academics looking at this question, and to both public and private sector entities.

Keywords: CEO/Executive Director Remuneration, Firm Performance

JEL Classification: D21, D22, D31, D79, G35, L25, M41