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The level of CEO compensation for the short and long-term - a view on high-tech firms

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 relationship between corporate performance and the Chief Executive Officer compensation in high-technology firms in the S&P 1500. The total CEO compensation and short and long-term compensations were tested regarding corporate performance. A panel data SUR model is estimated and describes the total compensation and cash compensation as a proportion of total pay for the period between 2000 and 2010 in high-technologies firms. The findings indicate that there is a strong and positive relation between CEO compensation and firm performance. This econometric study provides a better understanding on the relationship between CEO compensation and performance in high-technologies firms.

Suggested Citation

  • Paula Faria & Franscisco Vitorino Martins & Elísio Brandão, 2013. "The level of CEO compensation for the short and long-term - a view on high-tech firms," FEP Working Papers 519, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:519
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate finance; Executive compensation; Accounting;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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