EXECUTIVE COMPENSATION IN BRAZILIAN COMPANIES LISTED ON A STOCK EXCHANGE: THE IMPACT OF PRESTIGE, PERFORMANCE, CORPORATE GOVERNANCE AND CEO'S EXPERIENCE

Executive compensation has been a significant topic in business and academic circles in recent years, especially as a result of the corporate scandals that occurred, in the same time, the amounts paid to executives increased. Although the subject has been extensively studied in developed countries, there is no consensus regarding the factors influencing executive compensation. In Brazil, the issue took on a prominent role mainly due to the publication of Instruction N. 480/2009 by the Securities and Exchange Commission, which allowed to increase monitoring and control by investors and government agencies. In this context, this paper aimed to analyze how prestige, performance, corporate governance, and CEO experience influence the executive compensation of Brazilian companies listed on the stock exchange. The sample consists of 218 companies, and the analysis period is from 2012 to 2018. We used the panel data analysis technique, estimated by the Generalized Method of Moments. The results point to a positive relationship between prestige and executive compensation. Therefore, companies that experience an increase in corporate prestige pay their executives better. Return on equity and executive turnover also positively influence compensation.