Title: Executive Compensation And Firms' Performance: Evoidence From Non-Financial Companies In Sub-Saharan Africa
Authors: Isoso
Monday Chukwugeku(Phd) Ashibogwu
Nze Kingsley(PhD) Martyns
Edward Obiefuna Onyeme
Monday John(PhD) Osita Monye
Volume: 10
Issue: 8
Pages: 32-40
Publication Date: 2026/08/28
Abstract:
This study examines how CEOs compensation influences firm performances in sub-Sahara Africa countries. CEOs compensation was proxy with CEO stock option equity compensation granted to executives, while firm performance was proxy with ROA and ROE. The study utilised an ex-post facto research design. The research utilised a stratified random sample method to choose countries among the most robust stock exchanges in West Africa (Nigeria), Southern Africa (South Africa), and East Africa (Kenya). The information was acquired from the annual reports and accounts of the chosen companies as well as their websites. The research employed dynamic panel data analysis. To ensure clarity, the results of the study are conveyed through the designation of the firm performance proxy. The long run CEO compensation impact with firm performance proxy is not uniform. CEO compensations have strong positive influence with firm performance proxy with ROA. But negative insignificant influence with firm performance proxy with ROE in the long run. In the short run, CEO compensation reported positively significant impact with firm performance proxy with ROA. CEO compensation have significantly negative bearings with firm performance proxy with ROE in the short run. Since firm performance is a central issue in strategic management, corporations should guide against CEO's opportunistic behaviours that may be harmful in the long run.