Corporate Governance and Executives Compensations in Saudi Arabia: Mixed Methods Approach

Abstract

This study seeks to examine board characteristics as determinants of executives’ compensations in Saudi Arabia. To meet this goal, several hypotheses are developed and tested using a panel dataset including all listed non-financial companies during the period 2017-2019. The statistical analysis shows that there is a positive relationship between board meetings and executives compensations, while board size and independent are not related to executives compensations.

To complement this research, a qualitative analysis is added. The results provide potential explanations to the positive relationship between board meetings and executive compensations, and shed some lights on how board size and independence may related to executives compensations. Collectively, these results contribute to the governance literature by providing new evidence from the Saudi context.