IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

No images

UserInfo


18.97.9.175
United States United States
Your Time

User Statistics Info
IJSSE is one of the leading International Journals by User Statistics!

Login Form



IJSSE Newsletter Form
Full Names *
E-mail Address: *
Country *
PDF Print E-mail

INFLUENCE OF CHIEF EXECUTIVE OFFICERS (CEO’S) COMPENSATION ON PERFORMANCE OF COMPANIES QUOTED AT THE NAIROBI SECURITIES EXCHANGE

Geoffrey M. Irungu
Jomo Kenyatta University of Agriculture and Technology


Karanja Ngugi
Jomo Kenyatta University of Agriculture and Technology

ABSTRACT

Globally, for instance in America, The Enron scandal was  revealed in October 2001, and eventually led to the bankruptcy of the Enron Corporation, an American energy company and the dissolution of Arthur Anderson, which was one of the largest audit and accountancy firm in the world. Locally, data available from NSE revealed that Uchumi supermarkets Limited, was put under statutory receivership in the year 2006. The evidence cited that Uchumi Supermarket was a case of misappropriation of funds by the top management. Would C.E.O compensation be the cause of the problem? The general objective of this research is to analyze the influence of (CEOs) compensation on performance of companies quoted at Nairobi Securities Exchange. The study adopted descriptive research. The population of interest in this study consisted of all the CEOs of companies quoted in the NSE. Using simple random sampling, a sample of 183 was selected at random from a target population of 840 employees in the 10 sectors of NSE. The data was analysed using SPSS and the Microsoft excel to generate quantitative reports. The research concludes that, most of the total incentives of CEO are stock based incentives, which is greater than pay based incentives. Positive relationship exists between the cash-flow ownership of the largest shareholder and firm value. Cash compensation is negatively related to the percentage of stockholdings of insider directors and executives. Research concludes that directors need less fixed cash compensation since they already benefit directly from the value of their shares.


Full Text PDF Format

 
Banner
Publication Disclaimer: The accountability of the article published in IJSSE journals is entirely of the author(s) concerned and not of the publisher/editor. The view expressed in the articles of any IJSSE journal is those of the contributors, and it does not essentially correspond to the views of the publisher/editor. It is responsibility of the authors to seek copyright clearance for any part of the content of the articles. The publisher/editor of IJSSE journals is not liable for errors or any consequences arising from the exercise of information contained in it.
Free counters!
IJSSE - International Journal of Social Sciences and Entrepreneurship | Copyright 2013 | All Rights Reserved  <