Business, Management and Accounting
3 years ago

Family ownership boosts CEO pay in Jordan, foreign ownership follows suit.

Asian Economic and Financial Review
Ownership Structure and CEO Compensation: Evidence from Jordan
Jebreel Mohammad Al-Al-Msiedeen, Fawzi A. Al Sawalqa

Paper Summary

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The ownership structure of companies in Jordan affects how much CEOs get paid. Family-owned firms tend to pay their CEOs more, while foreign-owned companies also pay higher salaries to their CEOs. However, government ownership doesn't impact CEO compensation. Bigger companies pay their CEOs more because they have more money to spare. But how old a company is and how easily it can turn assets into cash don't really affect CEO pay.