The Determinants of Chief Financial Officer’s Compensation in the Service Industry

Abstract

This study examines the relationship between i) the firm size and the Chief Financial Offer's (CFO) compensa- tion and ii) the corporate performance and the CFO compensation in the service industry. Empirical results show that the CFO compensation is positively related to the firm size, net profit margin, and asset turnover. This paper offers useful in- sights for the service industry owners/operators based on empirical evidence.