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- Title
The effects of firm size and firm performance on CEO pay in Canada: A Re‐Examination and Extension.
- Authors
Yang, Caroline; Singh, Parbudyal; Wang, Jing
- Abstract
Using insights from academic and practitioners' perspectives and recent data, this paper extends the literature by using pay variables that are typically used by practitioners, including those not studied in previous academic research. Consistent with previous findings, firm size, measured by three‐year average revenues, has strong effects on CEO pay. However, the relationship is not the same for firms of different sizes. Revenue elasticity is strong among small companies and disappears for medium and large companies. Firm performance, measured by accounting‐based measures (return on assets and return on equity), and market‐based measures (total shareholder return and shareholder value), have little effects on CEO cash compensation, but strong positive effects on equity compensation. Implications for research and practice are discussed.
- Subjects
CANADA; ORGANIZATIONAL performance; BUSINESS size; PAY for performance; RATE of return; RETURN on assets
- Publication
Canadian Journal of Administrative Sciences (John Wiley & Sons, Inc.), 2020, Vol 37, Issue 3, p225
- ISSN
0825-0383
- Publication type
Article
- DOI
10.1002/cjas.1542