A study of board structure and CEO compensation in Singapore.

• Main Authors: Huang, Jiwei., Lim, Jesslin Kai Ting., Tan, Mei Hui.
• Other Authors: Ho Kim Wai
• Format: Final Year Project
• Language: English
• Published: 2010
• Subjects: DRNTU::Business::Finance::Corporate governance
• Online Access: http://hdl.handle.net/10356/21244
• Institution: Nanyang Technological University

The numerous media and academic reports on the continuing rise in executive compensation and lacklustre company performance in the industry turned shareholders’ attention to executive compensation. This study thus examines the impact of board characteristics on CEO compensation. From a sample of 442 companies listed on the Mainboard of the Singapore Exchange Limited (SGX), we analyzed the relationship between CEO compensation and factors such as board size, board independence, CEO stock ownership, CEO duality and tenure. The findings reveal that CEO duality and tenure have a significant effect on total CEO compensation. On the other hand, it is found that greater board independence leads to greater variable compensation while CEO stock ownership is inversely related to the proportion of CEO variable compensation. Overall, the evidence supports the view that board characteristics are important determinants of CEO compensation.