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Sam Hurst, Ed Vos


This paper analyses a combination of factors to try and determine whether they explain CEO compensation, and in turn help determine what makes the board of directors more effective. Factors include busy boards, local or international board members, dependent and not independent board members, director’s pay and tenure variables. Of the new and old factors considered in this approach and using a sample size of 31 NZ firms over the 2006/2007 years, a correlation existed between firm size/firm performance and CEO compensation. Further distinctions in regards to busy boards showed no significant relationship to CEO compensation, differing from previous studies, and casting doubt on whether it matters how busy the board is. Also the locality of the board was not a determining factor in CEO compensation.

Keywords: CEO, Compensation, Board of Directors

How to cite this paper: Hurst, S., & Vos, E. (2009). New Zealand CEO compensation factors. Corporate Ownership & Control, 6(4), 47-53.