The Open Business Journal

2009, 2 : 43-47
Published online 2009 March 24. DOI: 10.2174/1874915100902010043
Publisher ID: TOBJ-2-43

The Determinants of Chief Financial Officer’s Compensation in the Service Industry

Amarjit Gill , Nahum Biger , Chenping Pai , Harvinder S. Mand and Suraj Parkash Sharma
College of Business Administration, TUI University, CA, 90630, USA

ABSTRACT

This study examines the relationship between i) the firm size and the Chief Financial Offer’s (CFO) compensation and ii) the corporate performance and the CFO compensation in the service industry. Empirical results show that the CFO compensation is positively related to the firm size, net profit margin, and asset turnover. This paper offers useful insights for the service industry owners/operators based on empirical evidence.