This is a link to paper entitled The U.S. Retail Industry: Are CEOs Paid for Performance? .
Abstract...
This paper tests the relationship between CEO pay and company performance for firms in the retail industry. The U.S. retail industry is comprised of companies involved in the selling of products to end user consumers.
Competition among retailers is fierce making it essential for a retailer to develop a competitive advantage to have a chance for success. Considering the competitive nature of the industry, I hypothesize that CEO pay for retail companies a closely related to firm performance. The results of the study are mixed. Company performance as measured by total stock returns is significant at a five percent level of confidence but return on assets is not significant in explaining total CEO compensation. In addition, tenure of the CEO and size of the firm are positive and significant. Surprisingly, the risk variable, measured by equity beta, is significant but negative in relation to
CEO pay.
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