University of Twente Student Theses
CEO compensation and firm performance : a study based on FTSE100 companies
Nieman, Dane Paul Hans (2018) CEO compensation and firm performance : a study based on FTSE100 companies.
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Abstract: | This study examines how CEO compensation affects the firms’ performance. Companies that make up the FTSE100 are used for data collection as they are required to explicitly report the remuneration of directors. CEO compensation consists of basic salary, Bonuses, Pensions and Long-Term Incentive Plans for the year 2017 is measured. Firm performance is measured calculating the return on stock and the return on Assets during the year 2017. I find that CEO compensation has no significant impact on stock return and that CEO compensation has a significant positive relationship with return on assets however the impact is negligible. I find that CEO compensation has no significant impact on the firm’s performance. There is no evidence to believe that a higher CEO compensation package leads to better firm performance. |
Item Type: | Essay (Bachelor) |
Faculty: | BMS: Behavioural, Management and Social Sciences |
Subject: | 83 economics |
Programme: | International Business Administration BSc (50952) |
Link to this item: | https://purl.utwente.nl/essays/75495 |
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