Ownership Structure and Executive Compensation

This thesis examines the relationship between ownership structure and executive compensation in Saudi Arabia and Australia, offering a comparative analysis of an emerging and a developed economy. Using unbalanced panel data from listed firms, the study explores how institutional, managerial, and family ownership influence executive pay structures. The findings reveal that in Saudi Arabia, family ownership and socioemotional wealth considerations drive stable, fixed compensation, with lower emphasis on performance-based bonuses, reflecting cultural priorities of control and stability. In Australia, institutional ownership and robust governance frameworks align executive pay with performance metrics, reflecting transparency and market efficiency. These insights contribute to the understanding of how cultural and economic contexts shape executive remuneration.