This paper empirically tests the determinants of executive pay. In order to gain more understanding of the fat cat problem that have been subject to hot debate, we also examine a sample firms that suffer from the “fat cat problem”, defined as firms with poor performance while their Chief...

This paper empirically examines the determinants of director compensation and CEO compensation and investigates whether director compensation has an effect on CEO compensation. Based on 713 firms (or 2,852 firm-years) between 2007 and 2010, we find that CEO tenure is related to the ability of...