This meta-analysis takes stock of 121 C.E.O. pay studies publishedbetween 1998 and 2018 with the objective of identifying the maindrivers of C.E.O. pay from a global perspective and contributing tothe agency vs managerial debate on this ground. The meta-resultsdisclose a positive C.E.O. pay–performance correlation (the highestcorrelation coefficient corresponds to Earnings per share with a34%) as the agency theory prescribes and the governance policiespromote. However, firm size still predominates as the main driverof C.E.O. pay (correlation coefficient is around 44%) according tomanagerial premises. Moreover, our results reconcile bothapproaches because results of the meta-regressions suggest thatlarger companies and more independent boards strengthen thepay–performance association. Additional analyses of moderatingfactors on C.E.O. pay forces do not provide robust conclusions,though, they suggest: (1) weak impact, if any, of both the CadburyReport and the S.O.X.; and (2) lack of homogeneity in the bankingindustry despite its specific regulation.
Blanes, F., de Fuentes, C., & Porcuna, R. (2019). Executive remuneration determinants: New evidence from meta-analysis. Economic Research-Ekonomska Istraživanja, 33(1), 2844–2866. https://doi.org/10.1080/1331677X.2019.1678503
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