Abstract
This paper is an empirical analysis of CEO compensation structure and the relationship compensation structure has on the financial performance of the firm. This Independent Study hypothesizes that the greater percentage of incentive based compensation a CEO receives has a positive relationship with firm performance. The model used in this paper is a two stage least square model because economic theory suggests a simultaneous relationship between compensation structure and firm performance. The study uses a sample of CEOs from 325 manufacturing firms from COMPUSTAT. Compensation structure is found to have no statistically significant relationship with firm performance; therefore, the hypothesis of this study is not supported.
Advisor
Sell, John
Second Advisor
Burnell, Barbara
Department
Business Economics
Recommended Citation
Purcell, Scott D., "Does CEO Pay Structure Matter? Research and Empirical Analysis on the Relationship CEO Compensation Structure Has on the Financial Performance of the Firm" (2014). Senior Independent Study Theses. Paper 6042.
https://openworks.wooster.edu/independentstudy/6042
Disciplines
Business Administration, Management, and Operations | Business and Corporate Communications
Keywords
compensation structure, firm performance, CEO
Publication Date
2014
Degree Granted
Bachelor of Arts
Document Type
Senior Independent Study Thesis
© Copyright 2014 Scott D. Purcell