Determinants of CEO compensation in Pakistan from 2007 to 2009
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Most studies of the determinants of executive compensation are based on the experience of developed countries. This paper examines the relationship between firm size, firm performance and board composition on CEO compensation, in the context of an emerging and developing economy of Pakistan. Data for 83 listed firms from Lahore stock exchange, Pakistan has been used for 2007 to 2009. The findings show that firm size is one of the major determining factors of CEO compensation rather than performance. A family recruited CEO has a negative and significant effect upon the CEO compensation. In this study we also look at a number of other variables like board size, percentage of independent director, CEO duality and firm performance; but these variables do not significantly affect CEO compensation in companies in Pakistan. Key words: CEO Compensation, Board size, Duality, Ownership, Independent directors, Firm performance, Pakistan.
Masteroppgave i økonomi og administrasjon - Universitetet i Agder 2010