The dissertation researches the impact that key performance measures, notably, ROA and ROE,
Turnover, Net Dividend Yield, have on executives’ compensation, focusing on three specific regions,
the United Kingdom, Sweden and Denmark, and Portugal and Spain.
The method used was to apply an econometric regression model –OLS–, with selected corrections,
due to heteroscedasticity by means of a robust regression. The sample consisted of 98 FTSE100
Companies, 62 OMX Nordic companies, and 40 companies from IBEX and PSI20 combined.
The results obtained showed there is little evidence of the relation of firm performance with
compensation, but that there is a strong relationship between these variables and company size, which
is most significant in the UK. Also, there are marked differences amongst the regions, namely the
significance that Net Dividend Yield has in the region of Iberia, and the non-significance of most
variables for the Nordic regio
