Predicting CEO Compensation in Non-Controlled Public Corporations with the Canonical Regression Quantile Method
Abstract
The use of the Canonical Regression Quantiles Index proved that non-controlled companies that engage in long-term operational and financial goals post superior future performance. The Index indicates that current CEO compensation influences future performance. The Index provides a method for determining CEO pay for the next 1-2 year and is a useful method to distinguish over/underpaid CEOs as an unbiased alternative to the peer groups comparison used by most compensation consultants. This determination is statistically weak, but future research using the Canonical Regression Quantiles with a larger data set may lead to increased sensitivity and a powerful unbiased method for replacing compensation consultants who are responsible for the decoupling of CEO compensation and corporate performance.
Cite
@article{arxiv.2101.02296,
title = {Predicting CEO Compensation in Non-Controlled Public Corporations with the Canonical Regression Quantile Method},
author = {Joseph Haimberg and Stephen Portnoy},
journal= {arXiv preprint arXiv:2101.02296},
year = {2021}
}
Comments
arXiv admin note: substantial text overlap with arXiv:2011.08896