Executive pay linked to company value, not shareholder returns in NZ.
Executive incentive compensation schemes in New Zealand were studied to see how they affect company performance. The study looked at 73 listed companies and found that CEO pay and executive share ownership are linked to Tobin's q, a measure of company value. However, the level of compensation and use of incentive schemes did not show a clear connection to shareholder returns or return on assets. The study suggests that current disclosure rules in New Zealand may not be strict enough to fully understand how these schemes impact corporate performance.