Board Structure and Executive Compensation in the Public Sector: New Zealand Evidence

Steven F. Cahan; Frances Chua; Robert Ochoki Nyamori

doi:10.1111/j.0267-4424.2005.00228.x

Board Structure and Executive Compensation in the Public Sector: New Zealand Evidence

Steven F. Cahan, Frances Chua, Robert Ochoki Nyamori

Research output: Contribution to journal › Article › peer-review

34 Citations (Scopus)

Abstract

We provide evidence on the relation between board structure and CEO compensation in public sector corporations in New Zealand. Using a sample of 80 New Zealand public sector companies, we find that similar to private sector studies, CEO compensation is related to board size, whether the CEO sits on the board, and director quality. We also find that a composite measure of board structure is significant. We conclude that, similar to the private sector, board structure is important in constraining CEO pay. Moreover, our results suggest that private sector-style board can be effective in a public sector context.

Original language	English
Pages (from-to)	437-465
Number of pages	29
Journal	Financial Accountability and Management
Volume	21
Issue number	4
DOIs	https://doi.org/10.1111/j.0267-4424.2005.00228.x
Publication status	Published - Nov 1 2005
Externally published	Yes

Keywords

board of directors
corporate governance
executive compensation
public sector

ASJC Scopus subject areas

General Economics,Econometrics and Finance
General Business,Management and Accounting

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10.1111/j.0267-4424.2005.00228.x

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abstract = "We provide evidence on the relation between board structure and CEO compensation in public sector corporations in New Zealand. Using a sample of 80 New Zealand public sector companies, we find that similar to private sector studies, CEO compensation is related to board size, whether the CEO sits on the board, and director quality. We also find that a composite measure of board structure is significant. We conclude that, similar to the private sector, board structure is important in constraining CEO pay. Moreover, our results suggest that private sector-style board can be effective in a public sector context.",

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AB - We provide evidence on the relation between board structure and CEO compensation in public sector corporations in New Zealand. Using a sample of 80 New Zealand public sector companies, we find that similar to private sector studies, CEO compensation is related to board size, whether the CEO sits on the board, and director quality. We also find that a composite measure of board structure is significant. We conclude that, similar to the private sector, board structure is important in constraining CEO pay. Moreover, our results suggest that private sector-style board can be effective in a public sector context.

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KW - executive compensation

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Board Structure and Executive Compensation in the Public Sector: New Zealand Evidence

Abstract

Keywords

ASJC Scopus subject areas

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