The primary objective of this study is to examine whether the CEO's cash compensation is\ninfluenced by the firm�s performance or whether the inverse relationship exists, where the\nCEO's bonus rather has a positive effect on company performance. The study includes an\nexamination of firms listed on six emerging countries financial markets, and includes\nseparate statistical tests on firms of different sizes and different industry sector. The findings\nof the study demonstrate that there is no relationship between CEO cash compensation and\nperformance among the firms included in this study. Notwithstanding, some other incentive\nvariables have been found as important performance boosters among companies in certain\nsectors. This study has been able to establish that some theories of incentive contracts hold\ntrue among firms of certain sizes as well as among firms from certain industries.
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