The University of Southampton
×
Filter your search:
University of Southampton Institutional Repository

The relationship between CEO nominal salary and firm operating performance

The relationship between CEO nominal salary and firm operating performance
The relationship between CEO nominal salary and firm operating performance
Nominal salary is a symbolic amount that does not represent economically meaningful compensation. In this study, we document that CEO nominal salary is positively related to a firms' operating and stock performance. Our results stay robust when we address endogeneity issues using the Heckman self-selection two-stage regression and propensity score matching approach. The findings of our study render important implications about CEO compensation structure and how it can align manager incentives with shareholder wealth.
CEO nominal salary, operating performance, stock performance
1754-3037
229-253
Glambosky, Mina
640a0679-51db-45ed-9f48-befbc67ae01d
Jory, Surendranath
2624eb24-850a-48f6-b3c6-c96749b87322
Ngo, Thanh
852ea7b9-fd74-4a39-9281-87626e50886b
Glambosky, Mina
640a0679-51db-45ed-9f48-befbc67ae01d
Jory, Surendranath
2624eb24-850a-48f6-b3c6-c96749b87322
Ngo, Thanh
852ea7b9-fd74-4a39-9281-87626e50886b

Glambosky, Mina, Jory, Surendranath and Ngo, Thanh (2022) The relationship between CEO nominal salary and firm operating performance. International Journal of Corporate Governance, 12 (3/4), 229-253, [10.1504/IJCG.2021.10045430]. (doi:10.1504/IJCG.2021.10045430).

Record type: Article

Abstract

Nominal salary is a symbolic amount that does not represent economically meaningful compensation. In this study, we document that CEO nominal salary is positively related to a firms' operating and stock performance. Our results stay robust when we address endogeneity issues using the Heckman self-selection two-stage regression and propensity score matching approach. The findings of our study render important implications about CEO compensation structure and how it can align manager incentives with shareholder wealth.

This record has no associated files available for download.

More information

Accepted/In Press date: 24 February 2022
e-pub ahead of print date: 3 March 2022
Published date: 3 March 2022
Keywords: CEO nominal salary, operating performance, stock performance

Identifiers

Local EPrints ID: 469991
URI: http://eprints.soton.ac.uk/id/eprint/469991
DOI: doi:10.1504/IJCG.2021.10045430
ISSN: 1754-3037
PURE UUID: e9a30978-9115-4a62-bf78-30ea955bfe15
ORCID for Surendranath Jory: ORCID iD orcid.org/0000-0002-8265-0001

Catalogue record

Date deposited: 29 Sep 2022 16:51
Last modified: 17 Mar 2024 03:31

Export record

Altmetrics

Contributors

Author: Mina Glambosky
Author: Surendranath Jory ORCID iD
Author: Thanh Ngo

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Library staff additional information
Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×