Company Performance, Corporate Governance, and CEO Compensation in Norway and Sweden

Trond Randøy*, Jim Nielsen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


This paper examines the relationship among company performance, corporate governance arrangements, and CEO compensation within the Scandinavian countries of Norway and Sweden. Our sample consists of 224 traded companies, 120 of which are from Norway and 104 from Sweden. The empirical evidence from both Norway and Sweden reveals significant positive relationships among board size and CEO compensation, foreign board membership and CEO compensation, and market capitalization and CEO compensation. A significant negative relationship is found between CEO ownership and CEO compensation. In addition, no significant relationship is found between company performance and CEO compensation or CEO tenure and CEO compensation, except in the case of Norwegian firms when a change in market-to-book performance measure is used. Despite its limited geographical scope, the study adds to our general understanding of international corporate governance issues.

Original languageEnglish
JournalJournal of Management and Governance
Issue number1
Pages (from-to)57-81
Number of pages25
Publication statusPublished - Mar 2002
Externally publishedYes


  • CEO compensation
  • Company performance
  • Corporate governance
  • Norway
  • Sweden

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