| Summary: | 碩士 === 國立臺北大學 === 金融與合作經營學系 === 102 === This study examines the relationships of corporate financial performance on CEO compensation in US. Firstly, we discuss the impacts of corporate financial performance on CEO compensation , including total compensation, cash, equity, salary and bonus . The empirical result shows financial performance is positive related to CEO compensation.
Moreover, Yi-Jun Chen (2014) used the Expectation-Maximization algorithm to cluster the data , divided corporates into “Fat Cat” and “Non-Fat Cat” . In this study, We find whether Fat Cat or not, financial performance is positive related to CEO compensation.
Further more, We find we can divide “Fat Cat” companies into companies which make money (ROA greater than 0) and companies which do not make money (ROA less than or equal to 0) . It can obviously find the difference in the two groups through graphical analysis. When “Fat Cat” companies make money, financial performance is positive related to CEO compensation, but compensation is higher than other companies. When “Fat Cat” companies do not make money, the CEO still be paid high compensation. In contrast, when “Non-Fat Cat” companies make money, financial performance is positive related to CEO compensation. when “Non-Fat Cat” companies do not make money, financial performance is negative related to CEO compensation.
Finally, We find the Act made by the U.S. government brought the most significant changes to corporate governance regulation in the United States.
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