Type of Submission
The purpose of this research is to assess the elasticity of CEO compensation in the U.S. restaurant industry. Using a sample of 30 restaurant firms for the years 1993 through 2006, we find that a 1% increase in current year firm return yields an increase of approximately .43% for salary, bonus and stock options, .20% for salary and bonus and 2.74% for bonus and options. Mergers do not appear to impact CEO compensation significantly. Our findings are within the range found by many previous researchers.
Dalbor, Michael; Oak, Seonghee; and Rowe, Toni
"How closely is CEO compensation tied to performance? An examination of the U.S. restaurant industry,"
Journal of Hospitality Financial Management: Vol. 18
, Article 2.
Available at: http://scholarworks.umass.edu/jhfm/vol18/iss2/2