CEO Compensation and Company Growth in Malaysian Publicly Traded Companies
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Universiti Malaysia Sarawak (UNIMAS)
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This study investigates the relationship between CEO compensation and company growth among Malaysian publuicly listed agricultural companies guided by Agency Theory and Human Capital Theory, the study uses panel data from 25 companies across 2021-2023. Company growth is measured by growth asset and growth revenue. Control variables include board size, company size, leverage, liquidity and company age. The study employs fixed effects panel regression (Eviews) and SPSS multiple regression for robustness checks. The results reveal a significant positive relationship between CEO compensation and both growth indicators, supporting the theoretical assumption that performance-based pay motivates executives to enhance company outcomes. Liquidity, company size, and company age also show positive and significant effects, while leverage is negatively associated with growth. Board size is found to be insignificant. The findings are generally consistent with prior literature, reinforcing the importance of well-structured executive pay in promoting company growth. The research contributes to corporate governance in finance discussions in emerging markets and offer implications for policymakers, boards, and investors seeking to align compensations with strategic outcomes.