RT Journal Article
T1 On Directors’ Compensation: A Multilevel Analysis of Spanish Listed Companies
T2 Sobre la Remuneración de los Consejeros: Un Análisis Multinivel de las Empresas Españolas Cotizadas
A1 Núñez, Fernando
A1 Arcos-Vargas, Ángel
A1 Usabiaga Ibáñez, Carlos
A1 Álvarez-de-Toledo, Pablo
K1 Director compensation
K1 Mixed effects model
K1 Firm and director levels
K1 Listed companies
AB This study analyzes the determinants of the annual compensation of directors belonging to the boards of the Spanish companies that constitute the IBEX 35 stockindex. We investigate the importance of observed and unobserved heterogeneity in explaining director compensation. Based on a three-level mixed effect model,our analysis includes time-invariant random effects at company and manager level as determinants of director pay. We find that company effects explain 30% of thevariation in director pay, while company and director effects taken together explain 77% of that variation. Our findings suggest that the characteristics of the company, interms of activity sector, size and financial performance, and the professional attributes of the director (especially the role within the board), influence the compensationreceived. In addition, some directors and companies show random effects (either positive or negative) that significantly separate them from the expected compensationestimated from the fixed part of the model.
PB Springer
YR 2022
FD 2022
LK https://hdl.handle.net/10433/19883
UL https://hdl.handle.net/10433/19883
LA en
NO Empirical Economics (2022) 63: 2173-2207
NO Acknowledgements: We are grateful to the PAIDI research groups SEJ-513 and TEP-196, both of the Andalusian Government. Arcos-Vargas acknowledges the financial support received from the CERVERAresearch program of CDTI, the Industrial and Technological Development Center of Spain, under the research project HySGrid+ (CER-20191019). Usabiaga acknowledges the research project ECO2017-86780-R (Spanish Ministry of Economics, Industry and Competitiveness), for the funding provided. We acknowledge the comments and suggestions received from the Editors and Reviewers of Empirical Economicsand the participants in the following conferences: 35th National Conference of Labor Economics (Italian Association of Labor Economists, 2020), XXII Encuentro Internacional de Profesores de Políticade la Empresa (SanTelmo Business School, Seville, 2020), INFER 2020 Annual Conference and XXIII Encuentro de Economía Aplicada (2021). This paper has also been discussed with colleagues of the Universityof Seville and Pablo de Olavide University (Seville). All the remaining errors are our sole responsibility.
NO Proyectos de investigaciónFECYT -- PROPUESTAS DE MEJORA PARA LA ECONOMIA ESPAÑOLA: DESEMPLEO, EMPA...Grupo PAIDI SEJ 513Grupo PAIDI TEP 216CERVERA Research Program of CDTI, the Industrial and Technological Development Center of Spain, Research Project HySGrid+ (CER-20191019)
NO Departamento de Economía, Métodos Cuantitativos e Historia Económica
DS RIO
RD May 8, 2026