The relation between changes in CEO compensation and firm performance: A Japanese/American comparison

In this paper we compare the relations between the changes in the personal wealth of CEOs and firm performance among Japanese and American companies. Using a personal income measure imputed from annual personal income tax amounts for Japanese executives, we show that Japanese and US CEOs are rewarded for short-term changes in operating income and changes on shareholder wealth, and that the associations are similar for both groups. J. Japanese Int. Economies 22 (4) (2008) 605-619.