Board Structure and CEO Compensation: Evidence from U.S. Lodging Industry
Abstract
We examine the impact of the board characteristics on the CEO pay level in the US lodging industry consistent with the previous research. Results are conflicting with the findings of most previous research. Research in the corporate governance area has shown that board size and board independence are two important qualities of board of directors to efficiently control and monitor CEO activities and construct fair compensation packages. We did not observe that board size is important in determining CEO pay level. Moreover, the board independence measured in outside member representation is significant but the relation is in the inverse direction to our hypothesis. Although old director percentage and busy director percentage in board composition had no effect on the level of CEO pay, we found a significant duality effect on the pay .
Board Structure and CEO Compensation: Evidence from U.S. Lodging Industry
We examine the impact of the board characteristics on the CEO pay level in the US lodging industry consistent with the previous research. Results are conflicting with the findings of most previous research. Research in the corporate governance area has shown that board size and board independence are two important qualities of board of directors to efficiently control and monitor CEO activities and construct fair compensation packages. We did not observe that board size is important in determining CEO pay level. Moreover, the board independence measured in outside member representation is significant but the relation is in the inverse direction to our hypothesis. Although old director percentage and busy director percentage in board composition had no effect on the level of CEO pay, we found a significant duality effect on the pay .