Estimating the Determinants of CEO Compensation in the Information Technology Industry
This study analyzes the determinants of CEO compensation for the IT industry. A ten-year longitudinal analysis (1992–2002) was conducted utilizing the panel data estimation technique to determine the factors that affect CEO compensation. Sixty IT companies were studied. We determined that firm performance measures have a positive effect on compensation, while experience has little impact. We present an analysis and discussion of determinants of CEO compensation within the IT industry. This study is significant because it quantitatively analyzes those factors that have an immediate impact on compensation and those factors that have minimal impact.