Ersättningsnivåer - En studie av fast och rörlig lön till verkställande direktörer i svenska börsnoterade företag åren 2001 till 2005
Background and problem: Whether or not the pay to executives is fair is widely debated. During the last years especially the variable pay has been in the spotlight. But at what levels are the compensations really at? Media?s focus is mainly on the absolute highest compensations which may result in a skew view on pay-for-performance incentives.Purpose: The purpose of this thesis is to establish the levels of compensation to executives in a wide range of randomly selected companies listed on the Stockholm stock exchange during the years 2001 to 2005. Furthermore, the impact of a set of firm specific variables on compensation levels will be analyzed with basis in several hypothesis.Delimitations: The variable pay considered in this thesis will only be variable cash bonuses. Only complete financial years will be treated, companies listed or delisted during a financial year will be excluded. Information regarding fixed and variable pay is missing for year 2001 and information regarding the board of directors is missing for year 2002. Macroeconomic variables will not be considered.Method: The basis of this thesis is a quantitative study where data has been acquired from annual reports, Datastream and Sundqvist et al (2001-2005). The impact of a set of firm specific variables on compensation levels has been analyzed with three statistical tests; confidence intervals, correlation and regression models. The classification of industries has been accomplished through a minor modification of the classification made by Dagens Industri.Results and conclusions: Trends can be seen during the studied period towards higher compensations, more CEO?s that receive variable pay and a larger part of the compensation that is variable. To maximize your salary as a CEO you should work in a firm which: 1) has a high stock market value, 2) has a high turnover, 3) has a positive EBIT, 4) is characterized by a high volatility and a low largest share of votes. As CEO you should try to: 1) increase EBIT, 2) increase turnover. The industry of the firm is less important.