A STUDY OF THE RELATIONSHIP OF EXECUTIVE COMPENSATION ON THE FINANCIAL PERFORMANCE OF LEADING INFORMATION TECHNOLOGY COMPANIES
Executive pay has become a very interesting topic of debate in the finance literature. The goal of this study is to explore the topic of whether executive compensation has an effect on financial performance in the Information Technology Industry. This study will focus greatly on the salaries of key executives in the Information Technology industry.
The companies’ studied will be the top ten technology firms from the S&P index between the years fiscal years of 2010 to 2014. This data will then be used to analyse the relationship between executive salaries and the gross profits achieved by the companies each year. The overall results of this study should confirm whether increases in executive compensation have an associated effect on performance in the IT industry.
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