Top executive compensation and company performance in Finland

Research output: Working paperResearch


  • 0001017

    Final published version, 164 KB, PDF document

  • Jukka Vittaniemi, Denmark
  • Centre for Labour Market and Social Research
The compensation of Chief Executive Officers (CEOs) has attracted a lot of attention in recent years. The current value of stock options in CEOs' compensation packages may exceed several million Finnish marks and at the same time companies are firing thousands of employees. In this paper we examine whether the CEOs in our sample are rewarded for good economic performance or if pay increases occur irrespective of share performance and financial performance of their firms? The sample of this study consists of 48 listed and 70 private companies over the period 1989-1993. We were able to detect a significant pay-for-performance relationship in executive compensation in listed companies. In private companies this relationship is found to be much less important.
Original languageEnglish
Publication statusPublished - 1997

    Research areas

  • Lønsystemer, Lønanciennitet, Lønniveau, Ledelse, Finland, HHÅ forskning

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