Executive Compensation： Pay-for-Performance in High-Technology Firms.pdf

China-USA BusinessReview,ISSN 1537q514 November2013，Vo1．12，No．11，1073-1084 … … 售 ExecutiveCompensation：Pay-·for—-Performancein High--TechnologyFimr s PaulaFaria，FranciscoVitorinoM artins，ElisioBrand~o UniversityofPorto，Porto，Portugal ThisstudyexaminestherelationshipbetweencorporateperformanceandtheChiefExecutiveOfficer(CEO) compensation inhigh-technologyfirmsin theS&P 500．Thetotalshort-nad long．term CEO compensationin high-technoloyg wascomparedwithotherindustrialsectorsfrom standradclassificationcodesandtestedinterms ofcorporateperfomr ance．TheExecuCompdatabasewasusedtofindthevariablesandtocreateasampleoffirms between 2004 nad 2010．Importnatcoprorate perfomr ance variablesare used in thiswork such as assets， ， employees，sales，netincome，nadearningspershare(EPS)，asreportedbythefimrsforeachyera．Apnaeldata GLSwithafixedeffectmodelofrtimeisestimatedthatdescribestotalcompensationfortheperiodbetween2004 nad2010．Theresultwasalignedwiththetheoryofexecutivecompensationstoaddressagencyproblemsandto examineCEOpay-for-performance．Themainobjectiveofthispaperistoconsistentlydemonstratethatthe performna ce isdetemr inedofrthetotalCEO compensationofrshort··nad long--temr periodsna dtoexamine whetherthetotalremuneNtionpaidto CEOsinhigh-technologyfirmsin theS&P 500 isrelated to corporate finna ce．Thisworkprovidesabetterunderstandingoftherelationshipbetweencompensationandperformancein high-technology firms．Results suggest