The Study of Compensation Incentive Effects When the CEO is Also a Member of the Board of Directors

• Main Authors: Ming-Chi, Yeh, 葉銘淇
• Other Authors: Yang, M. P. Ph. D.
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/83749212803495460867

碩士 === 東吳大學 === 會計學系 === 92 === ABSTRACT Although Securities and Futures Commission (SFC) revised the “Principles of Forming Financial Statements for Securities’ Issuers”on November 7, 1995 and required all public offering companies to disclose directors and executives’ compensation information, yet they aren''t clearly enough nowadays. It is popular that CEO is also a member of the board of directors in the listed companies in Taiwan. But the investors can''t understand how much cash compensation, stock compensation and actual salary the CEO get. Therefore, this study will put CEO individual directors and executives’compensation into his total yearly compensation. This research wants to know if a CEO is also a member of the board or professional executive, how his compensation will affect a firm performance. The sample is the event of Taiwan stock-listed company, which CEO is also a member of the board or professional executive continually three years from 2000 to 2002. As consider the interactive affect between CEO compensation and firm performance, the measure we use to analyze the question is regression analysis and sensitivity analysis test. The empirical result reveals that: 1.The relationship between CEO total yearly compensation amount and firm performance is positive. 2.When CEO is also a member of the board, one dollar of his total yearly compensation has best incentive effect. 3.When CEO is also a member of the board, one stock bonus of his total yearly compensation has best incentive effect.