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A scaling perspective on the distribution of executive compensation

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  • Sitthiyot, Thitithep
  • Budsaratragoon, Pornanong
  • Holasut, Kanyarat

Abstract

We investigate scale invariance or self-similarity in the distribution of average executive compensation defined as total executive compensation for each company divided by the number of executives in that company. Using annual data on companies listed in the Stock Exchange of Thailand between 2002 and 2015, the average executive compensation is categorized into three groups according to time period, industry type, and company size. The results from estimating the Lorenz curve and the Kolmogorov–Smirnov test indicate that the distributions of average executive compensation are statistically scale invariance or self-similar across time period, industry type, and company size with p-values greater than 0.01 in all cases.

Suggested Citation

  • Sitthiyot, Thitithep & Budsaratragoon, Pornanong & Holasut, Kanyarat, 2020. "A scaling perspective on the distribution of executive compensation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 543(C).
    • Handle: RePEc:eee:phsmap:v:543:y:2020:i:c:s0378437119319818
    DOI: 10.1016/j.physa.2019.123556
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    References listed on IDEAS

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    Cited by:

    1. Thitithep Sitthiyot & Kanyarat Holasut, 2024. "Quantifying fair income distribution in Thailand," PLOS ONE, Public Library of Science, vol. 19(4), pages 1-20, April.
    2. Thitithep Sitthiyot & Kanyarat Holasut, 2020. "A simple method for measuring inequality," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 6(1), pages 1-9, December.
    3. Thitithep Sitthiyot & Kanyarat Holasut, 2021. "A simple method for estimating the Lorenz curve," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 8(1), pages 1-9, December.
    4. Thitithep Sitthiyot & Kanyarat Holasut, 2025. "A cross-country analysis of feasible income equality using the sigmoid function and the Boltzmann distribution," PLOS ONE, Public Library of Science, vol. 20(8), pages 1-20, August.
    5. Thitithep Sitthiyot & Kanyarat Holasut, 2024. "Quantifying fair income distribution in Thailand," Papers 2404.09629, arXiv.org.

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