1) What are the economic determinants of chairman compensation in Swedish firms?

Sammanfattning: Purpose: We attempt to fill a void in the research field of determinants of non-executive director compensation of the most actively traded companies in Sweden. Methodology: We are using a deductive and quantitative approach with a multiple regression to analyze our data and through that, serve our purpose. Theoretical perspective: Agency theory, Optimal Contracting theory, Stewardship theory, Managerial Power theory, Tournament theory and prior research has been used to fill our purpose. Conclusions: Swedish firms compensate their directors according to agency theory. We found that director compensation is positively linked to the variables: firm size, investment opportunities, ownership percentage, CEO compensation, Share-based remuneration and Anglo-American directors. We also found a negative relationship of voting-power and the other variables came out with an insignificant result.