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CEO compensation in high-tech firms and changes in the SFAS No 123 (R)

Author

Listed:
  • Paula Faria

    (School of Economics and Management, University of Porto)

  • Franscisco Vitorino Martins

    (School of Economics and Management, University of Porto)

  • Elísio Brandão

    (School of Economics and Management, University of Porto)

Abstract

This study examines the effects of the introduction of the FASB statement 123 (R) on corporate performance and Chief Executive Officer (CEO) compensation in high-technology firms. The total CEO compensation and short- and long-term compensations were tested regarding corporate performance. Panel data SUR models were estimated that describe total compensation and cash compensation as a proportion of total pay for the period between 2000 and 2010. The findings indicate that there is a positive relation between CEO compensation and firm performance in high-tech firms after the FASB statement 123 (R) is implemented, but with less intensity than before. This econometric study provides a better understanding of the relationship between CEO compensation and performance in high-technologies firms before and after the FASB statement 123 (R).

Suggested Citation

  • Paula Faria & Franscisco Vitorino Martins & Elísio Brandão, 2013. "CEO compensation in high-tech firms and changes in the SFAS No 123 (R)," FEP Working Papers 518, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:518
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/wp518.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Executive compensation; Corporate finance; FASB statement 123 (R);
    All these keywords.

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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