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Board of Directors and CEO’s Compensation: The Case of Listed European Firms

Author

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  • Hani El-Chaarani
  • Zouhour El-Abiad

Abstract

The aim of this research is to assess the role of the board of directors in determining CEO’s compensation in the context of listed European companies for 3 fiscal years (2016-2017-2018). Based on a sample extracted from 11 European countries (France, Belgium, Germany, Italy, Spain, Ireland, Sweden, Denmark, Finland, United Kingdom and Netherlands), the results reveal the importance of board of directors characteristics in determining of CEO’s compensation. The board size, CEO duality, the presence of independents directors and the existence of compensation committee have been shown as determinants of CEO’s compensation.

Suggested Citation

  • Hani El-Chaarani & Zouhour El-Abiad, 2021. "Board of Directors and CEO’s Compensation: The Case of Listed European Firms," Asian Social Science, Canadian Center of Science and Education, vol. 17(1), pages 107-107, January.
    • Handle: RePEc:ibn:assjnl:v:17:y:2020:i:1:p:107
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    References listed on IDEAS

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    2. Chau, Gerald & Gray, Sidney J., 2010. "Family ownership, board independence and voluntary disclosure: Evidence from Hong Kong," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 19(2), pages 93-109.
    3. Anderson, Ronald C. & Bizjak, John M., 2003. "An empirical examination of the role of the CEO and the compensation committee in structuring executive pay," Journal of Banking & Finance, Elsevier, vol. 27(7), pages 1323-1348, July.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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