Compensation Structures of Top Management Teams

Download or read book Compensation Structures of Top Management Teams written by Victor Ong Yong Huang and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: While there is some research on the relationship between the compensations of the Chief Executive Officer (CEO) and other executives in Top Management Team (TMT) member, they have used a sampling approach. A comprehensive study for the entire population of firms in the S&P 500 index has not been performed as yet. This thesis builds on previous work to understand the similarity of pay and pay structure of both the CEO and the TMT within the executive team in 2008. Also, the thesis attempts to establish whether executive-specific factors are correlated with pay and pay structures of the CEO and the TMT respectively. The specific factors to be examined are age, position and firm tenure of all executives whose salaries are disclosed in the proxy statements as well as annual reports of the complete population of firms in the S&P 500 index in 2008. My research finds strong evidence that CEO pay structure and TMT pay structure are strongly correlated but finds only a slight correlation between CEO pay and TMT pay. Executive-specific factors, specifically age, position tenure and firm tenure, have little or no influence on pay as well as pay structure of the CEO and the TMT.