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Is there an association between Vice‐Chancellors’ compensation and external performance measures?
Author(s) -
Bugeja Martin,
Govendir Brett,
Matolcsy Zoltan,
Pazmandy Greg
Publication year - 2021
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12590
Subject(s) - compensation (psychology) , ranking (information retrieval) , revenue , association (psychology) , payment , vice president , accounting , econometrics , economics , psychology , computer science , management , social psychology , finance , psychotherapist , machine learning
We provide evidence on the pay for performance relation between Australian university Vice Chancellors’ compensation and independent measures of university teaching, research and other performance indicators provided by external ranking bodies. Our results show limited association between university rankings and Vice Chancellors’ compensation, but confirm that Vice Chancellors’ compensation is predominantly driven by size measures based on the different components of revenue. Further, we find that few universities offer performance‐based bonus payments. Our results are robust with respect to a number of sensitivity tests.