Finansal Performans Göstergelerinin Üst Düzey Yönetici Ücretleri Üzerindeki Etkisi
The Impact of Financial Performance Indicators on Executive Compensation

Summary/Abstract: The relationship between executive compensation and firm performance has long been a subject of debate in both academic literature and business practice. This study aims to examine the relationship between executive compensation and both accounting-based and market-based financial indicators. The sample consists of 28 firms listed in the BIST 50 index over the period 2014–2023. The effects of accounting-based indicators (earnings per share, return on equity) and market-based indicators (market value, market-to-book ratio, stock price) on executive compensation are analyzed using panel data methods. The findings indicate that earnings per share and return on equity, as accounting-based indicators, and the market-to-book ratio, as a market-based indicator, have statistically significant effects on executive compensation. In addition, firm size and the COVID19 variable, included as control variables, are also found to be significant. The results reveal that firm size is the most influential determinant of executive compensation. Specifically, a 1% increase in total assets leads to approximately a 0.78% increase in executive compensation. In contrast, the effects of other variables are relatively limited.

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