Impact of CEOs Attributes on Remuneration: Evidence from Pakistan

Abstract

Existing research suggest that firm specific attributes are the key determinants of CEO compensation. However, this may not be the case as findings of this study show that CEOs attributes have material effects on remuneration, for instance in overall sample, CEO tenure and CEO interlocking are two important attributes that are positively while CEO’s business qualification is inversely related to compensation. Although CEO’s technical qualification is positively linked to compensation, but the relation is insignificant. Finally, firm size as control variable has positive effect on CEO remuneration. The positive relation suggests that large and complex organizations need qualified and experienced CEOs and they pay for such quality.