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CEO compensation in Australia: Is there a relationship between principles, policies and practices?
Author(s) -
Holland Peter J.,
Dowling Peter J.,
Innes Peter A.
Publication year - 2001
Publication title -
asia pacific journal of human resources
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.825
H-Index - 33
eISSN - 1744-7941
pISSN - 1038-4111
DOI - 10.1177/103841110103900304
Subject(s) - compensation (psychology) , executive compensation , accounting , workforce , business , divergence (linguistics) , demographic economics , labour economics , economics , psychology , economic growth , social psychology , linguistics , philosophy
Against a background of much debate and controversy, CEO compensation continues to increase at twice the rate of average weekly income in Australia. This paper first critically analyses the criteria upon which CEO compensation is established, and the policies which have facilitated the increasing divergence between CEO compensation and that of the rest of the workforce. Second the paper investigates the relationship between CEO compensation and organisational performance across a diverse range of listed Australian companies over an II‐year period. The results from this study indicate there is a very weak positive relationship between CEO compensation and organisational performance. Third, the paper explores emerging issues and trends in the ongoing refinement of the relationship between CEO compensation and organisational performance.