Determinants of Management Board Remuneration according to the Agency Perspective: Evidence form Poish Listed Companies

According to the agency perspective the remuneration paid to managers (agents) can act as incentive to align their interests with those of the company's owners (principals). This paper reports the level of remuneration of management board members of Polish companies listed on the main market of the Warsaw Stock Exchange (WSE) using data disclosed in annual reports published in 2006. We report the relationship between the aggregate remuneration of management board members and find a strong, positive relationship between compensation, firm size and board structure and a weak, positive relationship between compensation and ownership by foreign investors. We also find that ownership concentration is weakly and negatively associated with management board remuneration in Poland. In addition, our results suggest that firm performance is not significantly related to management board remuneration.