Factors affecting executive pay: Evidence from Philippine listed companies

• Main Authors: Larin, Joanna Mae S., Reyes, Roberto Romalio G., San Diego, Danica Marie D., Taruc, Kim G.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11973
• Institution: De La Salle University

Executive pay has received much scrutiny worldwide as a material amount of money is spent on such compensation schemes. The study explored factors that affect executive pay among all listed companies. This encompasses: firm characteristics which are market capitalization, firm size (total assets), and capital structure (debt-to-assets ratio) firm performance measured by sales growth and return on assets equity characteristics of executive ownership in outstanding shares and divided payout ratio and, corporate governance in terms of ratio of independent board members and board size. Their impact were further assessed in terms of each industry (financials, holding firms, industrial, mining and oil, property, and services). To accomplish this, the researchers made use of both panel regression and ordinary least squares being pursued. The results showed that the variables, market capitalization, capital structures, return on assets and executive ownership, significantly affect executive pay for all the listed firms. Meanwhile, the factors affecting executive pay become varied when analyzed in terms of each industry. By being able to point out which ones have a significant impact, stakeholder can better monitor the appropriateness of the executive pay.