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Australian chief executive officer remuneration: pay and performance

Author

Listed:
  • Rachel Merhebi
  • Kerry Pattenden
  • Peter L. Swan
  • Xianming Zhou

Abstract

International studies document strong evidence that chief executive officer (CEO) remuneration is positively correlated with corporate performance. Prior Australian studies, however, find no positive link between CEO pay and market performance. In the present paper we re‐examine the association between Australian CEO remuneration and firm performance using standard empirical models from the international literature. We find that in every respect the Australian evidence is consistent with international findings for firms of the USA, UK and Canada. In particular, we document CEO pay–performance association as positive and statistically significant.

Suggested Citation

  • Rachel Merhebi & Kerry Pattenden & Peter L. Swan & Xianming Zhou, 2006. "Australian chief executive officer remuneration: pay and performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(3), pages 481-497, September.
    • Handle: RePEc:bla:acctfi:v:46:y:2006:i:3:p:481-497
    DOI: 10.1111/j.1467-629X.2006.00178.x
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