Verkställande direktörers ersättning

Sammanfattning: Abstract Title: Chief Executive Officer remuneration, impact on business performance in the industrial activity Seminar date: 2012-05-31 Course: FEKH95, Degree Project, Corporate Finance, 15 credits (15ECTS) Authors: Gustav Olsson, Fabian van Beirs, Fredrik Andersson Advisor: Maria Gårdängen Keywords: Chief Executive Officer, compensation, industrial companies, regression analysis, Sweden Purpose: The purpose of this study is to examine and analyze the total remuneration to the CEO of an industrial business company for the years 2001, 2005 and 2010 on the OMX Large and Mid Cap and whether there is a significant correlation between high compensation and strong corporate performance. Methodology: The method used in this study is deductive and based on a quantitative survey in the form of a multiple regression analysis. The collection of information consists of cross-section data for the studied years. Theoretical Perspectives: The authors have based the theory primarily on wage determination theories regarding principal-agent problems, "Pay-for-performance", "tournament theory", "corporate governance", and previous empirical research that examines the differences of wage measurement and performance variables in firms. Empirical foundation: The study is based on material from 29 Swedish industrial companies listed on NASDAQ OMX Large and Mid Cap, results from the regression analysis, as well as CEO compensation related to various performance measures. Conclusions: The results show a strong significant relationship between CEO compensation and the company's market capitalization, and to some extent, its net sales. The study also shows a weaker relationship between CEO variable compensation and profitability.