The Relationship between Profitability and Executive Compensation of Companies Listed on The Stock Exchange

Abstract

The purpose of this independent study was to study the relationship between profitability and executive and committee compensation of listed companies in the Stock Exchange of Thailand.  The samples used in this study were 423 listed companies in the Stock Exchange of Thailand which were gathered from SETSMART data base in 2017. The statistics used to analyze data were frequency, percentage, mean, standard deviation, Pearson Product Moment Correlation Coefficient and Multiple Regression Analysis. The research results showed that the profitability was related to the executive and committee compensation. The ratio of Earnings per Share (EPS), Return on Assets (ROA), and Return on Owner’s Equity (ROE) had a positive relation with the executive and committee compensation. The  ratio that influence the executive and committee compensation were        Earnings per Share (EPS), Return on Assets (ROA) and the business size with statistical significance at 0.05 level