On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies

This study analyzes the determinants of the annual compensation of directors belonging to the boards of the Spanish companies that constitute the IBEX 35 stock index. We investigate the importance of observed and unobserved heterogeneity in explaining director compensation. Based on a three-level mi...

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Detalles Bibliográficos
Autores: Núñez, Fernando, Arcos-Vargas, Ángel, Usabiaga Ibáñez, Carlos, Álvarez-de-Toledo, Pablo
Tipo de recurso: artículo
Fecha de publicación:2022
País:España
Institución:Universidad Pablo de Olavide (UPO)
Repositorio:RIO. Repositorio Institucional Olavide
Idioma:inglés
OAI Identifier:oai:rio.upo.es:10433/19883
Acceso en línea:https://hdl.handle.net/10433/19883
Access Level:acceso abierto
Palabra clave:Director compensation
Mixed effects model
Firm and director levels
Listed companies
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network_acronym_str ES
network_name_str España
repository_id_str
spelling On Directors’ Compensation: A Multilevel Analysis of Spanish Listed CompaniesSobre la Remuneración de los Consejeros: Un Análisis Multinivel de las Empresas Españolas CotizadasNúñez, FernandoArcos-Vargas, ÁngelUsabiaga Ibáñez, CarlosÁlvarez-de-Toledo, PabloDirector compensationMixed effects modelFirm and director levelsListed companiesThis study analyzes the determinants of the annual compensation of directors belonging to the boards of the Spanish companies that constitute the IBEX 35 stock index. We investigate the importance of observed and unobserved heterogeneity in explaining director compensation. Based on a three-level mixed effect model, our analysis includes time-invariant random effects at company and manager level as determinants of director pay. We find that company effects explain 30% of the variation in director pay, while company and director effects taken together explain 77% of that variation. Our findings suggest that the characteristics of the company, in terms of activity sector, size and financial performance, and the professional attributes of the director (especially the role within the board), influence the compensation received. In addition, some directors and companies show random effects (either positive or negative) that significantly separate them from the expected compensation estimated from the fixed part of the model.Springer20242024-02-0720222022-01-0120222022-01-01journal articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10433/19883reponame:RIO. Repositorio Institucional Olavideinstname:Universidad Pablo de Olavide (UPO)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution 4.0 Internationalhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:rio.upo.es:10433/198832026-06-13T12:46:27Z
dc.title.none.fl_str_mv On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
Sobre la Remuneración de los Consejeros: Un Análisis Multinivel de las Empresas Españolas Cotizadas
title On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
spellingShingle On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
Núñez, Fernando
Director compensation
Mixed effects model
Firm and director levels
Listed companies
title_short On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
title_full On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
title_fullStr On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
title_full_unstemmed On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
title_sort On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
dc.creator.none.fl_str_mv Núñez, Fernando
Arcos-Vargas, Ángel
Usabiaga Ibáñez, Carlos
Álvarez-de-Toledo, Pablo
author Núñez, Fernando
author_facet Núñez, Fernando
Arcos-Vargas, Ángel
Usabiaga Ibáñez, Carlos
Álvarez-de-Toledo, Pablo
author_role author
author2 Arcos-Vargas, Ángel
Usabiaga Ibáñez, Carlos
Álvarez-de-Toledo, Pablo
author2_role author
author
author
dc.contributor.none.fl_str_mv
dc.subject.none.fl_str_mv Director compensation
Mixed effects model
Firm and director levels
Listed companies
topic Director compensation
Mixed effects model
Firm and director levels
Listed companies
description This study analyzes the determinants of the annual compensation of directors belonging to the boards of the Spanish companies that constitute the IBEX 35 stock index. We investigate the importance of observed and unobserved heterogeneity in explaining director compensation. Based on a three-level mixed effect model, our analysis includes time-invariant random effects at company and manager level as determinants of director pay. We find that company effects explain 30% of the variation in director pay, while company and director effects taken together explain 77% of that variation. Our findings suggest that the characteristics of the company, in terms of activity sector, size and financial performance, and the professional attributes of the director (especially the role within the board), influence the compensation received. In addition, some directors and companies show random effects (either positive or negative) that significantly separate them from the expected compensation estimated from the fixed part of the model.
publishDate 2022
dc.date.none.fl_str_mv 2022
2022-01-01
2022
2022-01-01
2024
2024-02-07
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10433/19883
url https://hdl.handle.net/10433/19883
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv reponame:RIO. Repositorio Institucional Olavide
instname:Universidad Pablo de Olavide (UPO)
instname_str Universidad Pablo de Olavide (UPO)
reponame_str RIO. Repositorio Institucional Olavide
collection RIO. Repositorio Institucional Olavide
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,198674

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