Executive remuneration and firm financial performance: lessons from listed companies in Australia and implications for their APEC counterparts

Albert Wijeweera, Peter Rampling, Ian Eddie

    Research output: Contribution to journalArticlepeer-review

    2 Scopus citations

    Abstract

    This paper attempts to understand whether there is alignment between executive remuneration and shareholder interests in publicly listed companies in Australia. The issue is analysed over three distinct stages of an economic cycle, and the panel fixed effects method is used to estimate the performance-remuneration models. The study finds that the long-term compoents of the remuneration package would highly incentivize CEOs and executive directors. Still, the fixed salary component exerts no such enticement for them to maximize shareholders’ wealth. This new information could be useful for Australian firms as well as for firms in Asia Pacific countries due to the close relationship they share with the Australian firms.

    Original languageBritish English
    Pages (from-to)260-272
    Number of pages13
    JournalAsia Pacific Business Review
    Volume28
    Issue number2
    DOIs
    StatePublished - 2022

    Keywords

    • APAC
    • Australian Securities Exchange
    • Company performance
    • executive remuneration
    • financial performance
    • fixed effects

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