An empirical investigation on determinants of executive directors' remuneration in Bursa Malaysia

Abstract

Executive directors' remuneration may link to company performance. This paper investigates the determinants of executive directors' remuneration of all public listed companies in Bursa Malaysia from 2004 to 2006. Multiple regression results indicated that tenure of an executive director has held the director' position appeared to be the most significant determinant for executive directors' remuneration. Duality emerged as second significant determinant except for Kuala Lumpur Composite Index (KLCI) component companies. Company performance and size were found as determinants except for KLCI component companies. The results also suggest that age and qualification are the weakest determinants for human capital variables. Overall, net profit was significant positive correlated with company size and particularly is evident for KLCI companies.