Impact of CEO, Director and Executive compensation on the Firm Performance with Moderating Effect Research & Development

Abstract

The aim of this article is to investigate the relationship between the CEO, Director and executives’ compensation on firm performance. Moreover research and development as moderator check the relation of R&D over firm performance and CEO, directors, executives’ compensation in an emerging Pakistan market. This research uses the GSEM approach for the problem of abnormality and homoscedastic arise the sample data collected from PSE 100 index non-financial list over the era of 2014-2019.The data collection sample from 75 non-financial firm and final sample consisted on 69 firm 6 organization exclude due to unavailability of data. This study provide the evidence that CEOs, Director, executives’ compensation have a significant relation with firm performance while, R&D show that insignificant relation with CEO/directors and Executives compensation perhaps R&D show significant relation with firm performance. This research contributed the firm with their better remuneration to the executive; CEO and director have better financial performance. Meanwhile research and development also play pivotal role toward firm performance due to their innovative idea and technique. In future other Asian countries included in the sample set like India and also some variable like CSR, Firm age, top executive education and tenure for showing the better significant results.

Keywords

• CEO
• Directors
• Executive compensation
• Research and Development
• Firm Performance