CEO Compensation in Early-Stage Firms

T. Bui, Andrew Ferguson, P. Lam
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Abstract

Prior studies on chief executive officer (CEO) compensation have mainly focused on large firms from a broad spectrum of industries. This study aims to provide further evidence on the determinants of CEO compensation for small, homogeneous firms. Using a sample of Australian early-stage mining exploration entities (MEEs) over the 2004−2017 period, we document a set of predictors of CEO compensation that are unique to this group of firms. First, fluctuations in commodity prices are found to be positively associated with CEO stock options value. Second, we find that signals of MEEs’ future prospects, conveyed through additions to and acquisition of capitalised exploration and evaluation expenditure, have positive impacts on CEO compensation. Third, proceeds from equity raisings indicate CEOs’ effort and skills to improve shareholder wealth, resulting in higher compensation. Lastly, we find some evidence supporting the relevance of non-executive directors’ advisory role over their monitoring role.
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初创公司CEO薪酬
先前对首席执行官薪酬的研究主要集中在各行各业的大公司。本研究旨在提供进一步的证据,CEO薪酬的决定因素为小型,同质公司。利用2004 - 2017年期间澳大利亚早期采矿勘探实体(MEEs)的样本,我们记录了一组对这类公司独特的CEO薪酬预测指标。首先,商品价格波动与CEO股票期权价值呈正相关。其次,我们发现通过增加和获得资本化的勘探和评价支出来传达的MEEs未来前景的信号对CEO薪酬有积极影响。第三,股权融资的收益表明ceo提高股东财富的努力和技能,从而导致更高的薪酬。最后,我们发现一些证据支持非执行董事的咨询角色与其监督角色的相关性。
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