The relationship between CEO compensation and company performances

Segaf, Segaf ORCID: https://orcid.org/0000-0003-0017-1021 (2012) The relationship between CEO compensation and company performances. El Muhasaba Jurnal Akuntansi, 3 (1). ISSN 2442-8922

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Abstract

Recently, CEO (Chief Executive Officer) salaries have attracted the attention of investors, the public, and even the media regarding company performance. This article examines and
analyzes the relationship between CEO salary and company performance. Although previous researchers have studied this question, it has mostly been carried out in developed countries such as America and England. Data collection through annual financial reports, the Thompson Data Stream program, and the General Meeting of Shareholders Reports. Thirty companies were used as samples from more than 500 companies listed on the KLSE (Kuala Lumpur Stock Exchange). Sampling used a simple random sampling method to provide equal opportunities in this research. In this research, company performance is measured through ROE (Return on Equity), ROA (Return on Assets), EPS (Earning per Share) Based on annual calculations, and NPM (Net Profit Margin) for six years (2003-2008). Then the data was analyzed through descriptive analysis and Anova regression analysis. The results of this research show that Genting Berhad's highest company salary, during 2008 was the best year to invest for risk-averse investors. During 2003-2007 there was a significant influence between CEO salary and company performance, whereas in 2008 there was no significant influence between salary. CEOs and firm performance.

Item Type:	Journal Article
Keywords:	Salary; CEO; Company Performance; Risk; Investment
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Segaf Segaf
Date Deposited:	31 Jan 2024 13:35

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