Getting past equity - CEO compensation among unlisted SMEs

Abstract: This thesis analyses how CEO cash compensation in unlisted Small and Medium Enterprises (SMEs) varies with firm performance, and how this compares to large and listed firms, using a series of first difference regression analyses. It uses the results to comment on how constrained access to equity compensation affects CEO pay-for-performance. It finds that unlisted SMEs are no more likely to employ pay-for-performance cash compensation when compared to larger listed firms. A secondary finding is that large and listed firms are more likely to employ previous year's performance to adjust CEO cash compensation. This thesis adds to existing literature by comparing compensation in unlisted SMEs to larger listed firms and drawing links to the access to equity-based executive compensation.