The determinants of CEO compensation in regulated investor-owned electric utilities: an empirical analysis

This writing summarizes in the following chapter a literature review relevant to the topic of CEO compensation. In this chapter, various studies which attempt to identify those factors which influence CEO compensation are examined. In addition, reasons for the controversy regarding CEO compensation are discussed in various articles, along with suggestions in some for controls and changes in this area. Various works regarding agency theory and market structure are also considered. Both multi-Industry and specific industry studies are examined, including a few studies whose specific-Industry sample was that of electric utility companies. This chapter also includes the results of personal contacts with an electric utility company CEO and with other electric utility company personnel knowledgeable concerning CEO compensation. These contacts were made to gain insights into what factors that electric utility company personnel themselves consider to influence CEO compensation in their industry.