Title: Does managerial pay depend on financial performance, organisational characteristics, and governance? Evidence from the Indian manufacturing sector

Authors: Brajaballav Pal; Sanjib Das; Poulomi Roy

Addresses: Department of Commerce, Vidyasagar University, India ' Department of Commerce, Vidyasagar University, India ' Department of Business Administration, Vidyasagar University, India

Abstract: The present paper attempts to examine the impact of financial performance, corporate characteristics, and governance mechanisms on managerial compensation as well as the linkage between them in selected 90 Indian companies from the NSE-listed manufacturing sector for the period 2010 to 2020. For the purpose of analysis of the study, we have used descriptive analysis, correlation matrix, and panel regression analysis. The outcome of the study shows that market-based performance, corporate characteristics, and governance mechanisms significantly impact managerial compensation. The findings of the study are robust to the deployment of GMM-based approaches. It is worth mentioning that present compensation has been fixed by the management, taking into consideration the previous managerial compensation, along with the impact of firm size, debt-equity, the board size, and market-based performance.

Keywords: executives pay; corporate performance; governance; dynamic panel data; GMM.

DOI: 10.1504/IJBGE.2025.146337

International Journal of Business Governance and Ethics, 2025 Vol.19 No.3/4, pp.388 - 405

Received: 02 Jan 2023
Accepted: 08 Jun 2023
Published online: 22 May 2025 *

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