Executive Summary
This paper investigates the relationship between CEO compensation and company performance for Dutch listed companies for the period 2002-2007. The study examines if absolute or relative changes in CEO pay are related to changes in company performance. Furthermore, the study investigates if the pay-performance relationship has strengthened after the introduction of the Dutch corporate governance code in 2004. The results suggest that the Dutch corporate governance code had a positive effect on the pay-performance relationship. This effect is mainly driven by the increased use of equity-based compensation. Compared internationally, the pay-performance relationship in the Netherlands remains relatively low
