APPENDIX A
Table A1: Company Descriptives
Company Name Two-Digit NACE
Industry Code* Average Size (Total Assets)** Average Size (Total Employees) Average Board Stability Average Board Internationalizat ion Aalberts Industries N.V. 28 633 5.752 100% 0% Akzo Nobel N.V. 24 12.380 68.429 40% 40% ASML Holding N.V. 29 2.997 5.203 57% 71% Ballast Nedam N.V. 45 769 5.971 67% 0%
Royal BAM Group N.V. 45 2.470 17.809 67% 17%
Batenburg Beheer N.V. 45 55 860 100% 0%
Royal Boskalis Westminster
N.V. 45 1.007 3.719 60% 0% Buhrmann N.V. I 51 5.093 22.436 67% 67% Corio N.V. 67 2.915 261 60% 10% CSM N.V. 15 2.182 11.693 50% 0% Royal DSM N.V. 24 8.584 21.745 88% 25% Fugro N.V. 74 800 6.725 80% 0% Getronics N.V. 72 2.916 25.834 55% 36% Hagemeyer N.V. 51 2.969 20.303 29% 43% Heijmans N.V. 45 1.222 8.808 43% 0% Heineken N.V. 15 8.635 50.023 43% 29% SBM Offshore N.V. II 11 1.792 3.610 33% 67% Royal KPN N.V. 64 29.615 35.364 67% 11% LogicaCMG PLC III 30 1.175 16.525 63% 100% Royal Numico N.V. 15 3.941 22.416 62% 54% Nutreco Holding N.V. 15 1.710 11.109 75% 25% Océ N.V. 30 2.789 22.379 67% 33%
Royal Philips Electronics
N.V. 31 33.149 185.541 64% 43%
Randstad Holding N.V. 74 1.905 241.440 57% 14%
Reed Elsevier N.V. 22 12.285 33.543 75% 63%
Stork N.V. 29 1.300 16.237 60% 0%
Royal Ten Cate N.V. 17 393 3.559 67% 0%
Table A1 (Continued)
I
In March 2007, the name of the company was changed into Corporate Express N.V.
II
Prior to April 2005, the name of the company was IHC Caland N.V.
III
Company was created in December 2002 as a result of a merger of Logica PLC and CMG PLC
IV
Prior to October 2006, the name of the company was TPG Post N.V.
V
In May 2007 the name of the company was changed into The Nielsen Company N.V.
*
NACE Industry Classification
11 Extraction of oil and gas and service activities incidental to oil and gas extraction
15 Manufacture of food products and beverages 17 Manufacture of textiles
22 Publishing, printing, and reproduction of concorded data 24 Manufacture of chemicals and chemical products 28
Manufacture of fabricated metal products, except machinery and equipment
29 Manufacture of machinery and equipment 30 Manufacture of office machinery and computers
31 Manufacture of electrical machinery and apparatus n.e.c. 45 Construction
51 Wholesale trade and commission trade, except of motor vehicles and motorcycles
63 Supporting and auxiliary transport activities; activities of travel agencies 64 Post and telecommunications
67 Activities auxiliary to financial intermediation 72 Computer and related activities
74 Other business activities
**
All values are in million EURO
Table A2: Executive Descriptives
Executive Name Company Name Year of Birth Current Age Nationality
Aalberts, J. Aalberts Industries 1939 68 Dutch Aast, G.J.A. van de Reed Elsevier 1958 49 Dutch
Appleton, S.N. Getronics 1955 52 British
Armour, M.H. Reed Elsevier 1955 52 British
Assem, E.H.M. van den Hagemeyer 1949 58 Dutch
Baan, A. Philips 1942 65 Dutch
Bakker, M.P. TNT 1961 46 Dutch
Becker, R.W.A. de I Buhrmann 1946 61 Belgian
Becker, R.W.A. de I Hagemeyer 1946 61 Belgian
Beerkens, B. Wolters Kluwer 1963 44 Dutch
Belt, J. van den Océ 1946 61 Dutch
Bemelmans, H.A.J. Heijmans 1944 63 Dutch
Bennink, J. Numico 1956 51 Dutch
Berdowski, P.A.M. Boskalis Westminster 1957 50 Dutch
Bergh, R.F. van den VNU 1950 57 Dutch
Bieman, J.C.A. den Nutreco 1959 48 Dutch
Blok, E. KPN 1957 50 Dutch
Bolkenstein, B.P. Aalberts Industries 1957 50 Dutch
Bolland, M.J. Heineken 1959 48 Dutch
Boogaard, H.A.D. van
den Stork 1939 68 Dutch
Boonstra. C. Philips 1938 69 Dutch
Bouland, H.E.H. Stork 1949 58 Dutch
Bouwman, T.G.G. VNU 1943 64 Dutch
Boxmeer, J.F.M.L. van Heineken 1961 46 Belgian
Brink, M.A. van den ASML 1957 50 Dutch
Britton, C. Numico 1957 50 British
Broeders, J.P.H. Vopak 1964 43 Dutch
Broek, J.W. van den Randstad Holding 1960 47 Dutch
Brons, P.K. Akzo Nobel 1942 65 Dutch
Bruijninckx, T.A.C.M. Ballast Nedam 1962 45 Dutch
Büche, K. Heineken 1946 61 Austrian
Chavoustie, D.P. ASML 1943 64 American
Chrispin Davis, Reed Elsevier 1950 57 British
Coene, O. Getronics 1961 46 Dutch
Connors, M.P. VNU 1955 52 American
Coopmans, J.B.P. KPN 1965 42 Dutch
Covington, A.C. Wessanen 1957 50 American
Crawford, A.S. LogicaCMG 1952 55 British
Cremers, F.J.G.M. VNU 1951 56 Dutch
Demuynck, G.J.M. KPN 1951 56 Dutch Detailleur, J.M. Wolters Kluwer 1947 60 French
Deursen, T.W.H.P. van Philips 1946 61 Dutch
Dijk, J.C.M. van Ten Cate N.A. N.A. Dutch
Dix, J.F. Océ 1946 61 Dutch
Docherty, G. SBM Offshore 1948 59 British
Docter, J.L. III Corio 1950 57 Dutch
Docter, J.L. III Getronics 1950 57 Dutch
Dooremalen, J.J.C.M.
van SBM Offshore 1944 63 Dutch
Doorn, B. van TNT N.A. N.A. Dutch
Dopper, J. DSM 1947 60 Dutch
Driest, C.J. van den Vopak 1947 60 Dutch
Dunn, D.J. ASML 1944 63 British
Dutiné, G.H.A. Philips 1952 55 German
Eenink, A.E. Numico N.A. N.A. Dutch
Elverding, P. DSM 1948 59 Dutch
Engstrom, E. Reed Elsevier 1964 43 Swedish
Farla, C.T.M.J. Randstad Holding 1945 62 Dutch
Fontaine, F.Y.M.M. Corio 1958 49 French
Franklin, A.J.D. BAM Groep 1944 63 British
Fröhlich, F.W. Akzo Nobel 1942 65 German
Frohn, R. Akzo Nobel 1960 47 Dutch
Fuchs, K.P. ASML 1959 48 German
Gelder, R. van Boskalis Westminster 1945 62 Dutch
Gerardu, N. DSM 1951 56 Dutch
Given, A.F. LogicaCMG 1947 60 British
Goppelsroeder, C. DSM 1959 48 Swiss
Goulden, D.I. Getronics 1960 47 British
Groener, G.W.H. Corio 1958 49 Dutch
Haank, D.J. Reed Elsevier 1953 54 Dutch
Haar, R. ter Hagemeyer 1950 57 Dutch
Haars, J.G. IV Corio 1951 56 Dutch
Haars, J.G. IV TNT 1951 56 Dutch
Heijmans, J.A.G. Heijmans 1946 61 Dutch
Henderson. J.M. KPN 1948 59 Dutch
Hendriks, R.R. CSM 1955 52 Dutch
Herrmann, D. LogicaCMG 1951 56 French
Hobbs, G.S. VNU 1941 66 American
Hoefsloot, G.H. Heijmans 1950 57 Dutch
Hoetmer, G.J. CSM 1956 51 Dutch
Hoevenaars, A.H.A Boskalis Westminster 1957 50 Dutch
Hoffman, M.S. Buhrmann 1952 55 American
Hombracht, N.J.A. van Vopak 1951 56 Dutch
Hommen, J.H.M. Philips 1943 64 Dutch
Hooft Graafland, D.R. Heineken 1955 52 Dutch
Hoven, J.A.J.M. van der Heijmans 1952 55 Dutch
Huët, J.M. Numico 1969 38 Dutch
Huijser, A. Philips 1946 61 Dutch
Iperen, R.L. van Océ 1953 54 Dutch
Janssen, J.P.M. Heijmans 1942 65 Dutch
Janssen, T. A.W.M. Getronics 1964 43 Dutch
Jones, A.D. TNT 1947 60 British
Jonkman, A. Fugro 1954 53 Dutch
Kamps, J.H. Boskalis Westminster 1959 48 Dutch
Karvinen, J.A. Philips 1957 50 Finnish
Keating, S. LogicaCMG 1964 43 British
Keller, D. SBM Offshore 1946 61 French
King, R.L. Buhrmann N.A. N.A. American
Kleisterlee, G.J. Philips 1946 61 Dutch
Klompe, A.J. Getronics 1949 58 Dutch
Koffrie, F.H.J. Buhrmann 1952 55 Dutch
Koning, F.D. de Vopak 1949 58 Dutch
Koorstra, H.M. TNT 1951 56 Dutch
Kottman, R.H.P.W. Ballast Nedam 1945 62 Dutch Kraats, R.J. van der Randstad Holding 1960 47 Dutch
Kramer, G.J. Fugro 1942 65 Dutch
Kramer, N.J.M. V CSM 1959 48 Dutch
Kramer, N.J.M. V Wessanen 1960 47 Dutch
Kreij, J.A. de Corio 1942 65 Dutch
Kreij, J.P. de Vopak 1959 48 Dutch
Kroft, D.A.M. van der Heijmans 1956 51 Dutch
Kuik, J. Corio N.A. N.A. Dutch
Kulik, D.G. TNT 1948 59 American
Laman Trip, O. Reed Elsevier 1946 61 Dutch
Lane, K.R. Wessanen 1947 60 American
Lede, C.J.A. Van Akzo Nobel 1943 64 Dutch
Leeuwen, J.P. van Corio 1954 53 Dutch
Lindelauf, L.J.M.V. Randstad Holding 1951 56 Dutch Linden, P.C. van der Batenburg Beheer 1953 54 Dutch
Lombard, M.C. TNT 1958 49 French
Lubsen, S.W.W. Heineken 1944 63 Dutch
Mareel, R. Numico 1964 43 Belgian
Martin, A.V. Vedior 1939 68 British
Mattsson, O. Akzo Nobel N.A. N.A. Swedish
McIntosh, S.K. ASML 1944 63 British
McKenna, J.A.P. LogicaCMG 1956 51 British
McKinstry, N. Wolters Kluwer 1959 48 American
Nes, K.G. van Boskalis Westminster 1944 63 Dutch Nieuwenhuyzen, G.J.
van CSM 1960 47 Dutch
Nooteboom, B.J. Randstad Holding 1958 49 Dutch
Olieman, F.J. CSM 1943 64 Dutch
Onkenhout, N.R. Wessanen 1961 46 Dutch
Oomens, W.H.O. Numico 1956 51 Dutch
Oosten, J.A.P. van BAM Groep 1948 59 Dutch
Paauwe, C. TNT 1939 68 Dutch
Pelizzari, G.B. Océ 1942 65 Italian
Pickles, G.L. Hagemeyer 1957 50 Australian
Pieters, M. KPN 1954 53 Dutch
Pieterse, R. Wolters Kluwer 1942 65 Dutch
Poel, A.P.M. van der Philips 1948 59 Dutch
Pot, W. Hagemeyer 1957 50 Dutch
Preisig, A.J. Vedior 1949 58 Swiss
Provoost, R.S. Philips 1959 48 Belgian
Prozes, A. Reed Elsevier 1946 61 American
Pruitt, G.E. Vopak 1964 43 American
Puri, A. Numico 1953 54 American
Ragnetti, A. Philips 1960 47 Italian
Read, M.P. LogicaCMG 1950 57 British
Reese, J.H. Randstad Holding 1953 54 American
Reigersman, C.J.A. BAM Groep 1946 61 Dutch
Riddell, J.H. Hagemeyer 1950 57 British
Riel, P. van Fugro 1956 51 Dutch
Rijn, C.J.M. van Nutreco 1947 60 Dutch
Roche, K.T. Getronics 1960 47 American
Roobol. L. KPN 1957 50 Dutch
Rossi, R.A.S. TNT 1943 64 Italian
Rowley, J. Vedior 1944 63 British
Rückert, A.R. Getronics 1946 61 German
Ruijter, R.A. VNU 1951 56 Dutch
Ruis, J. BAM Groep 1950 57 Dutch
Ruys, A. Heineken 1947 60 Dutch
Salle, P. Vedior 1965 42 French
Schaaf, A.H, Océ 1954 53 Dutch
Schaik, H.A. van Getronics 1950 57 Dutch
Scheepbouwer, A.J. VI KPN 1944 63 Dutch
Scheepbouwer, A.J. VI TNT 1944 63 Dutch
Schönfeld, J.C.M. Stork 1949 58 Dutch
Schwalb, R.D. DSM 1952 55 German
Sijbesma, F. DSM 1954 53 Dutch
Sivignon, P.J. Philips 1956 51 French
Smits, M.H.M. KPN 1961 46 Dutch
Spoor, A.H. Vopak 1948 59 Dutch
Stjernfelt, C. LogicaCMG 1943 64 Danish
Strömqvist, D. Akzo Nobel 1942 65 Swedish
Strong, J.L. Vedior 1955 52 American
Stuifzand. A.J.H.M. Heijmans 1958 49 Dutch
Taylor, I. LogicaCMG 1945 62 British
Thorne, R.A. Wessanen N.A. N.A. American
Tiberghien, F.P. Vedior 1949 58 French
Tiemstra, J.S.T. Hagemeyer 1952 55 Dutch
Tierney, P. Reed Elsevier 1946 61 American
Valks, P. Vedior 1958 49 Dutch
Veenhof, A.H.A. Wessanen 1945 62 Dutch
Veenman, A.W. Stork 1947 60 Dutch
Vervoort, F. Vedior 1962 45 Dutch
Vierstra, D.G. Wessanen 1958 49 Dutch
Vink, J.A.J. CSM 1947 60 Dutch
Vismans, P.A.R.J. Corio 1956 51 Dutch
Visscher, J. Corio N.A. N.A. Dutch
Vollebregt, S.S. Stork 1954 53 Dutch
Vonno, W. van BAM Groep 1941 66 Dutch
Voorst, P.K. van Getronics 1938 69 Dutch
Vorm, P.H. van der Ten Cate 1939 68 Dutch
Vries, L. de Ten Cate 1951 56 Dutch
Vries, N.J. de BAM Groep 1951 56 Dutch
Vuursteen, K. Heineken 1941 66 Dutch
Wagenaar, N.M. Getronics 1958 49 Dutch
Wagter, H. Wessanen 1949 58 Dutch
Waller, F.F. Buhrmann 1958 49 Dutch
Wel, P.W. van VII Numico N.A. N.A. Dutch
Wel, P.W. van VII Wolters Kluwer N.A. N.A. Dutch
Wennink, P.T.F.M. ASML 1957 50 Dutch
Wernink, Th.W. Corio 1946 61 Dutch
Wester, K.S. Fugro 1946 61 Dutch
Whybrow, J.W. Philips 1947 60 British
Wielen, J. Van der Numico 1944 63 Dutch
Wijers, G.J. Akzo Nobel 1951 56 Dutch
Wilderbeek, A.T.M. Akzo Nobel 1950 57 Dutch
Wilkinson, B. Vedior 1956 51 British
Wilson, M. Numico N.A. N.A. British
Wirken, G.N.G. Ballast Nedam 1948 59 Dutch
Yarrington. H.J. Wolters Kluwer 1942 65 American
Zondervan, A.M. Wessanen N.A. N.A. Dutch
Zuidam, J. DSM 1948 59 Dutch
Table A2 (Continued)
I
R.W.A. de Becker switched from Buhrmann to Hagemeyer in March 2004
II
C. H. van Dalen switched from DSM to TNT in April 2006
III
J.L. Docter left Getronics in March 2003 and joined Corio in January 2005
IV
J.G. Haars switched from TNT to Corio in April 2006
V
N.J.M. Kramer left Wessanen in December 2004 and joined CSM in April 2006
VI
A.J.Scheepbouwer switched from TNT to KPN in November 2001
VII
APPENDIX B
B.1
Results for hypothesis 1A: Above-average financial performance
B.1.1 Executive Remuneration = EFW
Table B1: Descriptive Statistics (EFW)
Mean Std. Deviation N
Executive Fixed Wage 461.201,01 212.024,056 363 Financial Performance Indicator
(Percentage) 1.371,98 5.459,759 363 Company Control Variable:
Industry Classification 35,23 18,948 363 Company Control Variable: Size
(Total Assets) 7.587.443.716,25 8.910.063.337,314 363 Company Control Variable: Size
(Total Employees) 44.675,54 57.936,931 363 Board Control Variable:
Percentage Board Internationalization
31,04 27,628 363
Board Control Variable:
Percentage Board Stability 63,97 16,215 363 Executive Control Variable:
Executive Age 52,52 6,166 363
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,31 ,463 363
Economy Control Variable: Dutch
Economy (AEX Index) 437,55 109,350 363 Economy Control Variable: World
Economy (S&P1000 Index) 3.072,05 518,136 363
Table B2: Regression Model Summary (EFW)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,472(a) ,223 ,201 189.528,874
Table B3: Coefficients (EFW) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) 129602,630 149007,928 ,870 ,385 Financial Performance Indicator (Percentage) 2,646 2,097 ,068 1,262 ,208 Company Control Variable:
Industry Classification -706,076 612,415 -,063 -1,153 ,250
Company Control Variable:
Size (Total Assets) 2,385E-06 ,000 ,100 1,696 ,091
Company Control Variable:
Size (Total Employees) ,326 ,221 ,089 1,474 ,141 Board Control Variable:
Percentage Board Internationalization
2986,885 471,424 ,389 6,336 ,000
Board Control Variable:
Percentage Board Stability -163,253 705,635 -,012 -,231 ,817 Executive Control Variable:
Executive Age 4644,015 1686,593 ,135 2,753 ,006 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-4157,789 26863,368 -,009 -,155 ,877
Economy Control Variable: Dutch Economy (AEX
Index)
-71,723 107,588 -,037 -,667 ,505
Economy Control Variable: World Economy (S&P1000
Index)
8,682 22,336 ,021 ,389 ,698
B.1.2 Executive Remuneration = EFW+B
Table B4: Descriptive Statistics (EFW+B)
Mean Std. Deviation N
Total Executive Cash
Remuneration 747.054,63 463.280,402 363 Financial Performance Indicator
(Percentage) 1.371,81 5.459,799 363 Company Control Variable:
Industry Classification 35,36 19,100 363 Company Control Variable: Size
(Total Assets) 7.589.121.413,22 8.909.318.307,091 363 Company Control Variable: Size
(Total Employees) 44.554,39 57.997,728 363 Board Control Variable:
Percentage Board Internationalization
30,76 27,562 363
Board Control Variable:
Percentage Board Stability 63,97 16,215 363 Executive Control Variable:
Executive Age 52,51 6,204 363
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,31 ,461 363
Economy Control Variable: Dutch
Economy (AEX Index) 437,55 109,350 363 Economy Control Variable: World
Economy (S&P1000 Index) 3.072,05 518,136 363 Table B5: Regression Model Summary (EFW+B)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,496(a) ,246 ,224 408.076,996
Table B6: Coefficients (EFW+B) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) 581055,957 320184,600 1,815 ,070 Financial Performance Indicator (Percentage) 3,096 4,522 ,036 ,685 ,494 Company Control Variable:
Industry Classification -1780,012 1306,915 -,073 -1,362 ,174
Company Control Variable:
Size (Total Assets) 1,096E-05 ,000 ,211 3,613 ,000
Company Control Variable:
Size (Total Employees) ,212 ,474 ,027 ,447 ,655 Board Control Variable:
Percentage Board Internationalization
5879,409 1020,349 ,350 5,762 ,000
Board Control Variable:
Percentage Board Stability -2651,066 1519,763 -,093 -1,744 ,082 Executive Control Variable:
Executive Age 9413,762 3603,453 ,126 2,612 ,009 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-44393,323 57952,012 -,044 -,766 ,444
Economy Control Variable: Dutch Economy (AEX
Index)
-787,202 232,229 -,186 -3,390 ,001
Economy Control Variable: World Economy (S&P1000
Index)
-5,045 48,080 -,006 -,105 ,916
B.1.3 Executive Remuneration = EFWB+O
Table B7: Descriptive Statistics (EFWB+O)
Mean Std. Deviation N
Total Executive Cash
Remuneration + Value Options 1.759.252,49 1.830.674,458 362 Financial Performance Indicator
(Percentage) 1.375,47 5.466,911 362 Company Control Variable:
Industry Classification 35,42 19,096 362 Company Control Variable: Size
(Total Assets) 7.605.257.936,46 8.916.336.031,837 362 Company Control Variable: Size
(Total Employees) 44.628,56 58.060,761 362 Board Control Variable:
Percentage Board Internationalization
30,76 27,599 362
Board Control Variable:
Percentage Board Stability 64,06 16,155 362 Executive Control Variable:
Executive Age 52,54 6,183 362
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,31 ,462 362
Economy Control Variable: Dutch
Economy (AEX Index) 436,94 108,872 362 Economy Control Variable: World
Economy (S&P1000 Index) 3.073,06 518,492 362
Table B8: Regression Model Summary (EFWB+O)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,522(a) ,273 ,252 1.583.390,995
Table B9: Coefficients (EFWB+O) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) -229248,533 1246263,388 -,184 ,854 Financial Performance Indicator (Percentage) 94,936 17,644 ,284 5,381 ,000 Company Control Variable:
Industry Classification -4268,406 5097,651 -,045 -,837 ,403
Company Control Variable:
Size (Total Assets) 2,810E-05 ,000 ,137 2,381 ,018
Company Control Variable:
Size (Total Employees) -1,468 1,840 -,047 -,798 ,426
Board Control Variable: Percentage Board
Internationalization 26208,326 3961,693 ,395 6,615 ,000 Board Control Variable:
Percentage Board Stability -1659,393 5950,370 -,015 -,279 ,781
Executive Control Variable:
Executive Age 26593,028 14051,512 ,090 1,893 ,059 Executive Control Variable:
Executive Nationality (0 =
Dutch, 1=Foreigner) 290697,220 - 225022,012 -,073 -1,292 ,197
Economy Control Variable:
Dutch Economy (AEX Index) -334,513 905,390 -,020 -,369 ,712
Economy Control Variable: World Economy (S&P1000
Index) -,287 186,647 ,000 -,002 ,999
B.1.4 Executive Remuneration = EFWBO+S
Table B10: Descriptive Statistics (EFWBO+S)
Mean Std. Deviation N
Total Executive Cash Remuneration + Value Options +
Value Shares
2.008.374,26 2.317.872,674 362 Financial Performance Indicator
(Percentage) 1.375,47 5.466,911 362 Company Control Variable:
Industry Classification 35,42 19,096 362 Company Control Variable: Size
(Total Assets) 7.605.257.936,46 8.916.336.031,837 362 Company Control Variable: Size
(Total Employees) 44.628,56 58.060,761 362 Board Control Variable:
Percentage Board Internationalization
30,76 27,599 362
Board Control Variable:
Percentage Board Stability 64,06 16,155 362 Executive Control Variable:
Executive Age 52,54 6,183 362
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,31 ,462 362
Economy Control Variable: Dutch
Economy (AEX Index) 436,94 108,872 362 Economy Control Variable: World
Economy (S&P1000 Index) 3.073,06 518,492 362
Table B11: Regression Model Summary (EFWBO+S)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,556(a) ,309 ,290 1.953.755,076
Table B12: Coefficients (EFWBO+S) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) -362607,214 1537771,420 -,236 ,814 Financial Performance Indicator (Percentage) 132,710 21,771 ,313 6,096 ,000 Company Control Variable:
Industry Classification -5037,599 6290,020 -,042 -,801 ,424
Company Control Variable:
Size (Total Assets) 2,306E-05 ,000 ,089 1,584 ,114
Company Control Variable:
Size (Total Employees) -1,070 2,271 -,027 -,471 ,638 Board Control Variable:
Percentage Board Internationalization
34411,976 4888,355 ,410 7,040 ,000
Board Control Variable:
Percentage Board Stability -1937,409 7342,195 -,014 -,264 ,792 Executive Control Variable:
Executive Age 21299,840 17338,240 ,057 1,228 ,220 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-437821,363 277655,929 -,087 -1,577 ,116
Economy Control Variable:
Dutch Economy (AEX Index) -1219,713 1117,166 -,057 -1,092 ,276 Economy Control Variable:
World Economy (S&P1000 Index)
277,564 230,304 ,062 1,205 ,229
B.1.5 Executive Remuneration = EFWBOS+P+O
Table B13: Descriptive Statistics (EFWBOS+P+O)
Mean Std. Deviation N
Total Executive Cash Remuneration + Value Options +
Value Shares + Executive Pensions Costs + Other Executive Remuneration
2.303.250,24 2.357.181,746 357
Financial Performance Indicator
(Percentage) 1.394,61 5.502,752 357 Company Control Variable:
Industry Classification 35,58 19,181 357 Company Control Variable: Size
(Total Assets) 7.541.830.176,47 8.962.452.050,985 357 Company Control Variable: Size
(Total Employees) 44.298,43 58.399,361 357 Board Control Variable:
Percentage Board Internationalization
30,63 27,771 357
Board Control Variable:
Percentage Board Stability 64,25 16,182 357 Executive Control Variable:
Executive Age 52,46 6,188 357
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,31 ,461 357
Economy Control Variable: Dutch
Economy (AEX Index) 433,81 106,353 357 Economy Control Variable: World
Economy (S&P1000 Index) 3.078,22 520,270 357 Table B14: Regression Model Summary (EFWBOS+P+O)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,559(a) ,312 ,292 1.983.064,908
Table B15: Coefficients (EFWBOS+P+O) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) 175744,614 1571466,968 ,112 ,911 Financial Performance Indicator (Percentage) 137,434 22,191 ,321 6,193 ,000 Company Control Variable:
Industry Classification -585,570 6431,410 -,005 -,091 ,928
Company Control Variable:
Size (Total Assets) 2,551E-05 ,000 ,097 1,722 ,086
Company Control Variable:
Size (Total Employees) -,462 2,308 -,011 -,200 ,842 Board Control Variable:
Percentage Board Internationalization
35623,245 4993,005 ,420 7,135 ,000
Board Control Variable:
Percentage Board Stability -6546,134 7486,799 -,045 -,874 ,383 Executive Control Variable:
Executive Age 27544,069 17725,919 ,072 1,554 ,121 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-432460,439 285271,983 -,085 -1,516 ,130
Economy Control Variable:
Dutch Economy (AEX Index) -1713,248 1167,849 -,077 -1,467 ,143 Economy Control Variable:
World Economy (S&P1000 Index)
176,887 233,960 ,039 ,756 ,450
B.2
Results for hypothesis 1B: Above-average market performance
B.2.1 Executive Remuneration = EFW
Table B16: Descriptive Statistics (EFW)
Mean Std. Deviation N Executive Fixed Wage 406.498,01 167.503,065 335 Market Performance Indicator
(Percentage) 95,61 298,502 335
Company Control Variable:
Industry Classification 39,82 20,196 335 Company Control Variable: Size
(Total Assets) 6.364.908.400,00 7.698.153.447,334 335 Company Control Variable: Size
(Total Employees) 43.183,38 57.352,739 335 Board Control Variable:
Percentage Board Internationalization
26,87 26,385 335
Board Control Variable:
Percentage Board Stability 64,66 16,214 335 Executive Control Variable:
Executive Age 52,67 6,070 335
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,27 ,444 335
Economy Control Variable: Dutch
Economy (AEX Index) 469,94 112,771 335 Economy Control Variable: World
Economy (S&P1000 Index) 2.967,29 503,098 335
Table B17: Regression Model Summary (EFW)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,398(a) ,159 ,133 155.992,466
a Predictors: (Constant), Economy Control Variable: World Economy (S&P1000 Index), Board Control Variable: Percentage Board Stability, Executive Control Variable: Executive Nationality (0 = Dutch, 1=Foreigner), Executive Control Variable: Executive Age, Market Performance Indicator (Percentage), Company Control Variable: Size (Total Assets), Company Control Variable: Industry Classification, Economy Control Variable: Dutch Economy (AEX Index), Board Control Variable: Percentage Board
Table B18: Coefficients (EFW)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 203028,221 121882,828 1,666 ,097 Market Performance Indicator (Percentage) 36,065 29,428 ,064 1,226 ,221 Company Control Variable:
Industry Classification -444,522 481,381 -,054 -,923 ,356 Company Control Variable:
Size (Total Assets) 7,770E-08 ,000 ,004 ,055 ,957 Company Control Variable:
Size (Total Employees) ,609 ,193 ,208 3,148 ,002 Board Control Variable:
Percentage Board Internationalization
1565,901 410,368 ,247 3,816 ,000
Board Control Variable:
Percentage Board Stability -1857,969 554,592 -,180 -3,350 ,001 Executive Control Variable:
Executive Age 3886,250 1420,231 ,141 2,736 ,007 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-20067,416 23823,381 -,053 -,842 ,400
Economy Control Variable:
Dutch Economy (AEX Index) 66,390 86,949 ,045 ,764 ,446 Economy Control Variable:
World Economy (S&P1000 Index)
12,972 19,068 ,039 ,680 ,497
B.2.2 Executive Remuneration = EFW+B
Table B19: Descriptive Statistics (EFW+B)
Mean Std. Deviation N Total Executive Cash
Remuneration 615.806,49 317.469,898 335 Market Performance Indicator
(Percentage) 95,69 298,484 335
Company Control Variable:
Industry Classification 39,97 20,318 335 Company Control Variable: Size
(Total Assets) 6.366.726.322,39 7.697.508.399,852 335 Company Control Variable: Size
(Total Employees) 43.052,10 57.415,868 335 Board Control Variable:
Percentage Board Internationalization
26,57 26,263 335
Board Control Variable:
Percentage Board Stability 64,66 16,214 335 Executive Control Variable:
Executive Age 52,66 6,113 335
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,27 ,442 335
Economy Control Variable: Dutch
Economy (AEX Index) 469,94 112,771 335 Economy Control Variable: World
Economy (S&P1000 Index) 2.967,29 503,098 335
Table B20: Regression Model Summary (EFW+B)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,419(a) ,175 ,150 292.701,514
a Predictors: (Constant), Economy Control Variable: World Economy (S&P1000 Index), Board Control Variable: Percentage Board Stability, Executive Control Variable: Executive Nationality (0 = Dutch, 1=Foreigner), Executive Control Variable: Executive Age, Market Performance Indicator (Percentage), Company Control Variable: Size (Total Assets), Company Control Variable: Industry Classification, Economy Control Variable: Dutch Economy (AEX Index), Board Control Variable: Percentage Board
Table B21: Coefficients (EFW+B)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 397930,787 228109,694 1,744 ,082 Market Performance Indicator (Percentage) -45,757 55,213 -,043 -,829 ,408 Company Control Variable:
Industry Classification -3677,847 892,321 -,235 -4,122 ,000 Company Control Variable:
Size (Total Assets) -2,723E-06 ,000 -,066 -1,022 ,308 Company Control Variable:
Size (Total Employees) 1,618 ,361 ,293 4,487 ,000 Board Control Variable:
Percentage Board Internationalization
2278,290 772,825 ,188 2,948 ,003
Board Control Variable:
Percentage Board Stability -2909,621 1041,712 -,149 -2,793 ,006 Executive Control Variable:
Executive Age 8926,533 2645,646 ,172 3,374 ,001 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-62929,146 44821,903 -,088 -1,404 ,161 Economy Control Variable:
Dutch Economy (AEX Index) -187,783 162,430 -,067 -1,156 ,248 Economy Control Variable:
World Economy (S&P1000 Index)
26,760 35,786 ,042 ,748 ,455
B.2.3 Executive Remuneration = EFWB+O
Table B22: Descriptive Statistics (EFWB+O)
Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options 1.239.088,31 1.014.675,805 334 Market Performance Indicator
(Percentage) 95,86 298,915 334
Company Control Variable:
Industry Classification 40,04 20,302 334 Company Control Variable: Size
(Total Assets) 6.380.555.742,51 7.704.888.467,418 334 Company Control Variable: Size
(Total Employees) 43.127,99 57.485,186 334 Board Control Variable:
Percentage Board Internationalization
26,55 26,300 334
Board Control Variable:
Percentage Board Stability 64,75 16,146 334 Executive Control Variable:
Executive Age 52,70 6,089 334
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,27 ,443 334
Economy Control Variable: Dutch
Economy (AEX Index) 469,37 112,457 334 Economy Control Variable: World
Economy (S&P1000 Index) 2.968,07 503,647 334
Table B23: Regression Model Summary (EFWB+O)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,440(a) ,194 ,169 925.079,776
a Predictors: (Constant), Economy Control Variable: World Economy (S&P1000 Index), Board Control Variable: Percentage Board Stability, Executive Control Variable: Executive Nationality (0 = Dutch, 1=Foreigner), Executive Control Variable: Executive Age, Market Performance Indicator (Percentage), Company Control Variable: Size (Total Assets), Company Control Variable: Industry Classification, Economy Control Variable: Dutch Economy (AEX Index), Board Control Variable: Percentage Board
Table B24: Coefficients (EFWB+O)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) -137353,064 723733,885 -,190 ,850 Market Performance Indicator (Percentage) 149,967 174,514 ,044 ,859 ,391 Company Control Variable:
Industry Classification -9689,539 2831,686 -,194 -3,422 ,001 Company Control Variable:
Size (Total Assets) 1,967E-05 ,000 ,149 2,332 ,020 Company Control Variable:
Size (Total Employees) 1,015 1,140 ,057 ,890 ,374 Board Control Variable:
Percentage Board Internationalization
7184,741 2445,839 ,186 2,938 ,004
Board Control Variable:
Percentage Board Stability -11284,939 3321,392 -,180 -3,398 ,001 Executive Control Variable:
Executive Age 10955,124 8405,140 ,066 1,303 ,193 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-149447,955 141828,411 -,065 -1,054 ,293 Economy Control Variable:
Dutch Economy (AEX Index) 2063,691 514,631 ,229 4,010 ,000 Economy Control Variable:
World Economy (S&P1000 Index)
207,084 113,130 ,103 1,830 ,068
B.2.4 Executive Remuneration = EFWBO+S
Table B25: Descriptive Statistics (EFWBO+S)
Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options + Value Shares
1.333.231,56 1.051.522,007 334
Market Performance Indicator
(Percentage) 95,86 298,915 334
Company Control Variable:
Industry Classification 40,04 20,302 334 Company Control Variable: Size
(Total Assets) 6.380.555.742,51 7.704.888.467,418 334 Company Control Variable: Size
(Total Employees) 43.127,99 57.485,186 334 Board Control Variable:
Percentage Board Internationalization
26,55 26,300 334
Board Control Variable:
Percentage Board Stability 64,75 16,146 334 Executive Control Variable:
Executive Age 52,70 6,089 334
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,27 ,443 334
Economy Control Variable: Dutch
Economy (AEX Index) 469,37 112,457 334 Economy Control Variable: World
Economy (S&P1000 Index) 2.968,07 503,647 334 Table B26: Regression Model Summary (EFWBO+S)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,430(a) ,185 ,160 963.686,355
a Predictors: (Constant), Economy Control Variable: World Economy (S&P1000 Index), Board Control Variable: Percentage Board Stability, Executive Control Variable: Executive Nationality (0 = Dutch, 1=Foreigner), Executive Control Variable: Executive Age, Market Performance Indicator (Percentage), Company Control Variable: Size (Total Assets), Company Control Variable: Industry Classification, Economy Control Variable: Dutch Economy (AEX Index), Board Control Variable: Percentage Board
Table B27: Coefficients (EFWBO+S)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 163087,656 753937,646 ,216 ,829 Market Performance Indicator (Percentage) 86,595 181,797 ,025 ,476 ,634 Company Control Variable:
Industry Classification -10778,982 2949,861 -,208 -3,654 ,000 Company Control Variable:
Size (Total Assets) 1,270E-05 ,000 ,093 1,445 ,149 Company Control Variable:
Size (Total Employees) 2,203 1,187 ,120 1,856 ,064 Board Control Variable:
Percentage Board Internationalization
9194,841 2547,912 ,230 3,609 ,000
Board Control Variable:
Percentage Board Stability -11432,238 3460,005 -,176 -3,304 ,001 Executive Control Variable:
Executive Age 5740,395 8755,914 ,033 ,656 ,513 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-151191,594 147747,370 -,064 -1,023 ,307 Economy Control Variable:
Dutch Economy (AEX Index) 1375,505 536,108 ,147 2,566 ,011 Economy Control Variable:
World Economy (S&P1000 Index)
338,853 117,851 ,162 2,875 ,004
B.2.5 Executive Remuneration = EFWBOS+P+O
Table B28: Descriptive Statistics (EFWBOS+P+O)
Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options + Value Shares + Executive Pensions Costs + Other Executive
Remuneration
1.553.797,17 1.145.943,488 329
Market Performance Indicator
(Percentage) 97,16 300,996 329
Company Control Variable:
Industry Classification 40,29 20,359 329 Company Control Variable: Size
(Total Assets) 6.293.117.379,94 7.730.329.291,552 329 Company Control Variable: Size
(Total Employees) 42.746,96 57.837,641 329 Board Control Variable:
Percentage Board Internationalization
26,34 26,447 329
Board Control Variable:
Percentage Board Stability 64,98 16,164 329 Executive Control Variable:
Executive Age 52,61 6,095 329
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,26 ,442 329
Economy Control Variable: Dutch
Economy (AEX Index) 466,48 110,802 329 Economy Control Variable: World
Economy (S&P1000 Index) 2.972,07 506,415 329 Table B29: Regression Model Summary (EFWBOS+P+O)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,429(a) ,184 ,158 1.051.314,605
a Predictors: (Constant), Economy Control Variable: World Economy (S&P1000 Index), Board Control Variable: Percentage Board Stability, Executive Control Variable: Executive Nationality (0 = Dutch, 1=Foreigner), Executive Control Variable: Executive Age, Market Performance Indicator (Percentage), Company Control Variable: Size (Total Assets), Company Control Variable: Industry Classification, Economy Control Variable: Dutch Economy (AEX Index), Board Control Variable: Percentage Board
Table B30: Coefficients (EFWBOS+P+O)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 283175,165 826170,155 ,343 ,732 Market Performance Indicator (Percentage) 5,123 198,328 ,001 ,026 ,979 Company Control Variable:
Industry Classification -9852,109 3226,731 -,175 -3,053 ,002 Company Control Variable:
Size (Total Assets) 9,949E-06 ,000 ,067 1,037 ,301 Company Control Variable:
Size (Total Employees) 3,523 1,295 ,178 2,720 ,007 Board Control Variable:
Percentage Board Internationalization
9688,806 2796,298 ,224 3,465 ,001
Board Control Variable:
Percentage Board Stability -13627,238 3808,398 -,192 -3,578 ,000 Executive Control Variable:
Executive Age 16665,153 9620,758 ,089 1,732 ,084 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-73979,371 163500,676 -,029 -,452 ,651 Economy Control Variable:
Dutch Economy (AEX Index) 1181,265 595,717 ,114 1,983 ,048 Economy Control Variable:
World Economy (S&P1000 Index)
227,361 128,595 ,100 1,768 ,078
B.3
Results for hypothesis 2A: Below-average financial performance
B.3.1 Executive Remuneration = EFW
Table B31: Descriptive Statistics (EFW)
Mean Std. Deviation N Executive Fixed Wage 430.604,05 196.994,737 385 Financial Performance Indicator
(Percentage) -2.058,66 11.614,582 385 Company Control Variable:
Industry Classification 39,97 21,240 385 Company Control Variable: Size
(Total Assets) 6.308.957.511,69 8.159.599.635,670 385 Company Control Variable: Size
(Total Employees) 42.691,12 59.864,160 385 Board Control Variable:
Percentage Board Internationalization
33,35 28,072 385
Board Control Variable:
Percentage Board Stability 64,26 16,373 385 Executive Control Variable:
Executive Age 52,15 6,325 385
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,33 ,472 385
Economy Control Variable: Dutch
Economy (AEX Index) 424,43 115,804 385 Economy Control Variable: World
Economy (S&P1000 Index) 2.952,42 511,180 385
Table B32: Regression Model Summary (EFW)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,449(a) ,202 ,180 178.338,325
Table B33: Coefficients (EFW) Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 298897,830 129070,475 2,316 ,021 Financial Performance Indicator (Percentage) -1,145 ,840 -,067 -1,363 ,174 Company Control Variable:
Industry Classification -916,785 477,347 -,099 -1,921 ,056 Company Control Variable:
Size (Total Assets) 4,498E-06 ,000 ,186 3,160 ,002 Company Control Variable:
Size (Total Employees) ,270 ,195 ,082 1,385 ,167 Board Control Variable:
Percentage Board Internationalization
1388,045 412,634 ,198 3,364 ,001
Board Control Variable:
Percentage Board Stability -2437,140 630,774 -,203 -3,864 ,000 Executive Control Variable:
Executive Age 3561,731 1525,952 ,114 2,334 ,020 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
22622,286 24281,157 ,054 ,932 ,352
Economy Control Variable:
Dutch Economy (AEX Index) -47,677 87,526 -,028 -,545 ,586 Economy Control Variable:
World Economy (S&P1000 Index)
21,465 20,362 ,056 1,054 ,292
B.3.2 Executive Remuneration = EFW+B
Table B34: Descriptive Statistics (EFW+B)
Mean Std. Deviation N Total Executive Cash
Remuneration 693.384,89 406.574,012 390 Financial Performance Indicator
(Percentage) -2.032,56 11.541,974 390 Company Control Variable:
Industry Classification 39,74 21,200 390 Company Control Variable: Size
(Total Assets) 6.381.406.774,36 8.131.943.070,727 390 Company Control Variable: Size
(Total Employees) 42.514,31 59.498,468 390 Board Control Variable:
Percentage Board Internationalization
33,69 28,052 390
Board Control Variable:
Percentage Board Stability 64,24 16,268 390 Executive Control Variable:
Executive Age 52,09 6,343 390
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,34 ,473 390
Economy Control Variable: Dutch
Economy (AEX Index) 427,45 118,078 390 Economy Control Variable: World
Economy (S&P1000 Index) 2.949,25 508,648 390
Table B35: Regression Model Summary (EFW+B)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,477(a) ,227 ,207 362.120,571
Table B36: Coefficients (EFW+B) Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 101566,890 261578,334 ,388 ,698 Financial Performance Indicator (Percentage) -4,671 1,703 -,133 -2,743 ,006 Company Control Variable:
Industry Classification -2614,272 967,813 -,136 -2,701 ,007 Company Control Variable:
Size (Total Assets) 8,762E-06 ,000 ,175 3,045 ,002 Company Control Variable:
Size (Total Employees) ,481 ,395 ,070 1,218 ,224 Board Control Variable:
Percentage Board Internationalization
2692,863 831,519 ,186 3,238 ,001
Board Control Variable:
Percentage Board Stability -5327,354 1279,974 -,213 -4,162 ,000 Executive Control Variable:
Executive Age 6747,734 3064,128 ,105 2,202 ,028 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
46066,545 48835,812 ,054 ,943 ,346 Economy Control Variable:
Dutch Economy (AEX Index) 208,485 172,950 ,061 1,205 ,229 Economy Control Variable:
World Economy (S&P1000 Index)
137,422 41,328 ,172 3,325 ,001
B.3.3 Executive Remuneration = EFWB+O
Table B37: Descriptive Statistics (EFWB+O)
Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options 1.469.761,60 2.190.714,846 390 Financial Performance Indicator
(Percentage) -2.032,56 11.541,974 390 Company Control Variable:
Industry Classification 39,74 21,200 390 Company Control Variable: Size
(Total Assets) 6.381.406.774,36 8.131.943.070,727 390 Company Control Variable: Size
(Total Employees) 42.514,31 59.498,468 390 Board Control Variable:
Percentage Board Internationalization
33,69 28,052 390
Board Control Variable:
Percentage Board Stability 64,24 16,268 390 Executive Control Variable:
Executive Age 52,09 6,343 390
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,34 ,473 390
Economy Control Variable: Dutch
Economy (AEX Index) 427,45 118,078 390 Economy Control Variable: World
Economy (S&P1000 Index) 2.949,25 508,648 390
Table B38: Regression Model Summary (EFWB+O)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,411(a) ,169 ,147 2.023.209,507
Table B39: Coefficients (EFWB+O)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 3952621,476 1461468,399 2,705 ,007 Financial Performance Indicator (Percentage) -14,793 9,516 -,078 -1,555 ,121 Company Control Variable:
Industry Classification -14897,331 5407,285 -,144 -2,755 ,006 Company Control Variable:
Size (Total Assets) 5,281E-05 ,000 ,196 3,285 ,001 Company Control Variable:
Size (Total Employees) ,605 2,205 ,016 ,275 ,784 Board Control Variable:
Percentage Board Internationalization
6661,029 4645,791 ,085 1,434 ,152
Board Control Variable:
Percentage Board Stability -9621,224 7151,361 -,071 -1,345 ,179 Executive Control Variable:
Executive Age -18018,453 17119,638 -,052 -1,053 ,293 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
413616,290 272851,331 ,089 1,516 ,130 Economy Control Variable:
Dutch Economy (AEX Index)
1941,619 966,293 ,105 2,009 ,045 Economy Control Variable:
World Economy (S&P1000 Index)
-651,078 230,903 -,151 -2,820 ,005
B.3.4 Executive Remuneration = EFWBO+S
Table B40: Descriptive Statistics (EFWBO+S)
Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options + Value Shares
1.721.398,45 2.368.565,021 384
Financial Performance Indicator
(Percentage) -2.062,37 11.629,541 384 Company Control Variable:
Industry Classification 39,91 21,322 384 Company Control Variable: Size
(Total Assets) 6.436.299.348,96 8.183.402.999,563 384 Company Control Variable: Size
(Total Employees) 43.097,69 59.777,474 384 Board Control Variable:
Percentage Board Internationalization
33,17 27,957 384
Board Control Variable:
Percentage Board Stability 63,90 16,164 384 Executive Control Variable:
Executive Age 52,07 6,337 384
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,33 ,471 384
Economy Control Variable: Dutch
Economy (AEX Index) 429,41 117,943 384 Economy Control Variable: World
Economy (S&P1000 Index) 2.952,55 511,924 384
Table B41: Regression Model Summary (EFWBO+S)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,414(a) ,172 ,150 2.184.287,145
Table B42: Coefficients (EFWBO+S)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 4786482,331 1583101,315 3,023 ,003 Financial Performance Indicator (Percentage) -13,019 10,292 -,064 -1,265 ,207 Company Control Variable:
Industry Classification -21769,863 5850,763 -,196 -3,721 ,000 Company Control Variable:
Size (Total Assets) 4,888E-05 ,000 ,169 2,815 ,005 Company Control Variable:
Size (Total Employees) 1,149 2,381 ,029 ,482 ,630 Board Control Variable:
Percentage Board Internationalization
13351,159 5054,319 ,158 2,642 ,009
Board Control Variable:
Percentage Board Stability -14895,520 7801,630 -,102 -1,909 ,057 Executive Control Variable:
Executive Age -30156,915 18618,255 -,081 -1,620 ,106 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
447527,384 297511,211 ,089 1,504 ,133 Economy Control Variable:
Dutch Economy (AEX Index)
1039,348 1060,144 ,052 ,980 ,328 Economy Control Variable:
World Economy (S&P1000 Index)
-373,361 250,136 -,081 -1,493 ,136
B.3.5 Executive Remuneration = EFWBOS+P+O
Table B43: Descriptive Statistics (EFWBOS+P+O)
Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options + Value Shares + Executive Pensions Costs + Other Executive
Remuneration
1.911.500,97 2.396.049,900 379
Financial Performance Indicator
(Percentage) -2.089,27 11.703,823 379 Company Control Variable:
Industry Classification 40,15 21,362 379 Company Control Variable: Size
(Total Assets) 6.363.427.308,71 8.212.490.078,127 379 Company Control Variable: Size
(Total Employees) 43.284,99 60.149,076 379 Board Control Variable:
Percentage Board Internationalization
32,82 27,969 379
Board Control Variable:
Percentage Board Stability 63,92 16,270 379 Executive Control Variable:
Executive Age 52,13 6,318 379
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,33 ,470 379
Economy Control Variable: Dutch
Economy (AEX Index) 426,36 115,680 379 Economy Control Variable: World
Economy (S&P1000 Index) 2.955,81 514,501 379 Table B44: Regression Model Summary (EFWBOS+P+O)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,407(a) ,166 ,143 2.217.701,397
Table B45: Coefficients (EFWBOS+P+O) Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 4490185,169 1610519,346 2,788 ,006 Financial Performance Indicator (Percentage) -15,597 10,463 -,076 -1,491 ,137 Company Control Variable:
Industry Classification -21905,478 5949,089 -,195 -3,682 ,000 Company Control Variable:
Size (Total Assets) 4,910E-05 ,000 ,168 2,774 ,006 Company Control Variable:
Size (Total Employees) 1,211 2,424 ,030 ,499 ,618 Board Control Variable:
Percentage Board Internationalization
13929,081 5170,834 ,163 2,694 ,007
Board Control Variable:
Percentage Board Stability -14880,745 7926,227 -,101 -1,877 ,061 Executive Control Variable:
Executive Age -23269,291 19120,130 -,061 -1,217 ,224 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
426022,250 305041,746 ,084 1,397 ,163 Economy Control Variable:
Dutch Economy (AEX Index) 1039,947 1105,430 ,050 ,941 ,347 Economy Control Variable:
World Economy (S&P1000 Index)
-329,011 254,069 -,071 -1,295 ,196
B.4
Results for hypothesis 2B: Below-average market performance
B.4.1 Executive Remuneration = EFW
Table B46: Descriptive Statistics (EFW)
Mean Std. Deviation N Executive Fixed Wage 430.496,60 183.028,986 341 Market Performance Indicator
(Percentage) -128,97 494,490 341
Company Control Variable:
Industry Classification 41,36 20,966 341 Company Control Variable: Size
(Total Assets) 6.822.377.395,89 9.844.328.180,879 341 Company Control Variable: Size
(Total Employees) 44.877,88 66.244,538 341 Board Control Variable:
Percentage Board Internationalization
30,21 27,834 341
Board Control Variable:
Percentage Board Stability 63,03 18,162 341 Executive Control Variable:
Executive Age 52,45 6,404 341
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,30 ,457 341
Economy Control Variable: Dutch
Economy (AEX Index) 386,79 94,490 341
Economy Control Variable: World
Economy (S&P1000 Index) 3.121,32 512,932 341 Table B47: Regression Model Summary (EFW)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,476(a) ,227 ,203 163.367,893
a Predictors: (Constant), Economy Control Variable: World Economy (S&P1000 Index), Company Control Variable: Industry Classification, Company Control Variable: Size (Total Assets), Executive Control Variable: Executive Nationality (0 = Dutch, 1=Foreigner), Executive Control Variable: Executive Age, Market
Table B48: Coefficients (EFW)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 267907,973 130851,658 2,047 ,041 Market Performance Indicator (Percentage) -30,939 18,508 -,084 -1,672 ,096 Company Control Variable:
Industry Classification -1240,797 443,483 -,142 -2,798 ,005 Company Control Variable:
Size (Total Assets) 4,417E-06 ,000 ,238 3,640 ,000 Company Control Variable:
Size (Total Employees) ,393 ,168 ,142 2,346 ,020 Board Control Variable:
Percentage Board Internationalization
1216,945 421,778 ,185 2,885 ,004
Board Control Variable:
Percentage Board Stability -1195,145 568,357 -,119 -2,103 ,036 Executive Control Variable:
Executive Age 3380,118 1435,348 ,118 2,355 ,019 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
1697,226 24500,460 ,004 ,069 ,945 Economy Control Variable:
Dutch Economy (AEX Index) -203,324 103,845 -,105 -1,958 ,051 Economy Control Variable:
World Economy (S&P1000 Index)
32,535 19,350 ,091 1,681 ,094
B.4.2. Executive Remuneration = EFW+B
Table B49: Descriptive Statistics (EFW+B)
Mean Std. Deviation N Total Executive Cash
Remuneration 698.904,28 424.908,850 341 Market Performance Indicator
(Percentage) -128,97 494,490 341
Company Control Variable:
Industry Classification 41,36 20,966 341 Company Control Variable: Size
(Total Assets) 6.822.377.395,89 9.844.328.180,879 341 Company Control Variable: Size
(Total Employees) 44.877,88 66.244,538 341 Board Control Variable:
Percentage Board Internationalization
30,21 27,834 341
Board Control Variable:
Percentage Board Stability 63,03 18,162 341 Executive Control Variable:
Executive Age 52,45 6,404 341
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,30 ,457 341
Economy Control Variable: Dutch
Economy (AEX Index) 386,79 94,490 341
Economy Control Variable: World
Economy (S&P1000 Index) 3.121,32 512,932 341 Table B50: Regression Model Summary (EFW+B)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,496(a) ,246 ,223 374.559,785
a Predictors: (Constant), Economy Control Variable: World Economy (S&P1000 Index), Company Control Variable: Industry Classification, Company Control Variable: Size (Total Assets), Executive Control Variable: Executive Nationality (0 = Dutch, 1=Foreigner), Executive Control Variable: Executive Age, Market
Table B51: Coefficients (EFW+B)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 143523,963 300008,574 ,478 ,633 Market Performance Indicator (Percentage) -49,253 42,433 -,057 -1,161 ,247 Company Control Variable:
Industry Classification -1165,188 1016,790 -,057 -1,146 ,253 Company Control Variable:
Size (Total Assets) 1,337E-05 ,000 ,310 4,806 ,000 Company Control Variable:
Size (Total Employees) ,391 ,385 ,061 1,016 ,310 Board Control Variable:
Percentage Board Internationalization
2859,529 967,027 ,187 2,957 ,003
Board Control Variable:
Percentage Board Stability -3552,205 1303,094 -,152 -2,726 ,007 Executive Control Variable:
Executive Age 6449,001 3290,877 ,097 1,960 ,051 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-1409,947 56173,137 -,002 -,025 ,980
Economy Control Variable:
Dutch Economy (AEX Index) -333,732 238,090 -,074 -1,402 ,162 Economy Control Variable:
World Economy (S&P1000 Index)
133,669 44,365 ,161 3,013 ,003
B.4.3 Executive Remuneration = EFWB+O
Table B52: Descriptive Statistics (EFWB+O)
Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options 1.217.918,87 1.232.638,760 341 Market Performance Indicator
(Percentage) -128,97 494,490 341
Company Control Variable:
Industry Classification 41,36 20,966 341 Company Control Variable: Size
(Total Assets) 6.822.377.395,89 9.844.328.180,879 341 Company Control Variable: Size
(Total Employees) 44.877,88 66.244,538 341 Board Control Variable:
Percentage Board Internationalization
30,21 27,834 341
Board Control Variable:
Percentage Board Stability 63,03 18,162 341 Executive Control Variable:
Executive Age 52,45 6,404 341
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,30 ,457 341
Economy Control Variable: Dutch
Economy (AEX Index) 386,79 94,490 341
Economy Control Variable: World
Economy (S&P1000 Index) 3.121,32 512,932 341
Table B53: Regression Model Summary (EFWB+O)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,455(a) ,207 ,183 1.114.086,000
a Predictors: (Constant), Economy Control Variable: World Economy (S&P1000 Index), Company Control Variable: Industry Classification, Company Control Variable: Size (Total Assets), Executive Control Variable: Executive Nationality (0 = Dutch, 1=Foreigner), Executive Control Variable: Executive Age, Market
Table B54: Coefficients (EFWB+O)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) -98829,724 892341,799 -,111 ,912 Market Performance Indicator (Percentage) -95,157 126,212 -,038 -,754 ,451 Company Control Variable:
Industry Classification -8147,976 3024,328 -,139 -2,694 ,007 Company Control Variable:
Size (Total Assets) 2,809E-05 ,000 ,224 3,395 ,001 Company Control Variable:
Size (Total Employees) 3,496 1,144 ,188 3,057 ,002 Board Control Variable:
Percentage Board Internationalization
7705,657 2876,314 ,174 2,679 ,008
Board Control Variable:
Percentage Board Stability -6271,867 3875,906 -,092 -1,618 ,107 Executive Control Variable:
Executive Age 9996,178 9788,345 ,052 1,021 ,308 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-203626,507 167080,685 -,076 -1,219 ,224 Economy Control Variable:
Dutch Economy (AEX Index) 1128,276 708,172 ,086 1,593 ,112 Economy Control Variable:
World Economy (S&P1000 Index)
177,822 131,960 ,074 1,348 ,179
B.4.4 Executive Remuneration = EFWBO+S
Table B55: Descriptive Statistics (EFWBO+S)
Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options + Value Shares
1.539.621,93 1.711.673,762 335
Market Performance Indicator
(Percentage) -130,40 498,794 335
Company Control Variable:
Industry Classification 41,58 21,088 335 Company Control Variable: Size
(Total Assets) 6.893.197.014,93 9.917.954.097,988 335 Company Control Variable: Size
(Total Employees) 45.588,92 66.620,953 335 Board Control Variable:
Percentage Board Internationalization
29,55 27,639 335
Board Control Variable:
Percentage Board Stability 62,61 18,059 335 Executive Control Variable:
Executive Age 52,42 6,399 335
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,29 ,454 335
Economy Control Variable: Dutch
Economy (AEX Index) 388,31 94,643 335
Economy Control Variable: World
Economy (S&P1000 Index) 3.128,19 514,916 335 Table B56: Regression Model Summary (EFWBO+S)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,463(a) ,215 ,190 1.540.217,605
Table B57: Coefficients (EFWBO+S)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 6319,572 1240336,084 ,005 ,996 Market Performance Indicator (Percentage) 83,642 175,179 ,024 ,477 ,633 Company Control Variable:
Industry Classification -15907,378 4184,506 -,196 -3,801 ,000 Company Control Variable:
Size (Total Assets) 2,797E-05 ,000 ,162 2,439 ,015 Company Control Variable:
Size (Total Employees) 3,565 1,585 ,139 2,249 ,025 Board Control Variable:
Percentage Board Internationalization
17322,730 4035,897 ,280 4,292 ,000
Board Control Variable:
Percentage Board Stability -9911,550 5395,871 -,105 -1,837 ,067 Executive Control Variable:
Executive Age -5707,802 13646,146 -,021 -,418 ,676 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-220559,257 234025,852 -,059 -,942 ,347 Economy Control Variable:
Dutch Economy (AEX Index) 1491,782 987,039 ,082 1,511 ,132 Economy Control Variable:
World Economy (S&P1000 Index)
557,112 184,793 ,168 3,015 ,003
B.4.5 Executive Remuneration = EFWBOS+P+O
Table B58: Descriptive Statistics (EFWBOS+P+O)Mean Std. Deviation N Total Executive Cash
Remuneration + Value Options + Value Shares + Executive Pensions Costs + Other Executive
Remuneration
1.825.556,37 1.783.442,197 335
Market Performance Indicator
(Percentage) -130,40 498,794 335
Company Control Variable:
Industry Classification 41,58 21,088 335 Company Control Variable: Size
(Total Assets) 6.893.197.014,93 9.917.954.097,988 335 Company Control Variable: Size
(Total Employees) 45.588,92 66.620,953 335 Board Control Variable:
Percentage Board Internationalization
29,55 27,639 335
Board Control Variable:
Percentage Board Stability 62,61 18,059 335 Executive Control Variable:
Executive Age 52,42 6,399 335
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,29 ,454 335
Economy Control Variable: Dutch
Economy (AEX Index) 388,31 94,643 335
Economy Control Variable: World
Economy (S&P1000 Index) 3.128,19 514,916 335
Table B59: Regression Model Summary (EFWBOS+P+O)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,467(a) ,219 ,194 1.600.743,679
Table B60: Coefficients (EFWBOS+P+O)
Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) -79883,462 1289077,686 -,062 ,951 Market Performance Indicator (Percentage) 79,405 182,063 ,022 ,436 ,663 Company Control Variable:
Industry Classification -15668,837 4348,945 -,185 -3,603 ,000 Company Control Variable:
Size (Total Assets) 3,138E-05 ,000 ,175 2,632 ,009 Company Control Variable:
Size (Total Employees) 3,406 1,648 ,127 2,067 ,040 Board Control Variable:
Percentage Board Internationalization
18158,884 4194,496 ,281 4,329 ,000
Board Control Variable:
Percentage Board Stability -11807,971 5607,913 -,120 -2,106 ,036 Executive Control Variable:
Executive Age 833,481 14182,399 ,003 ,059 ,953 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-239064,313 243222,387 -,061 -,983 ,326 Economy Control Variable:
Dutch Economy (AEX Index) 1559,808 1025,827 ,083 1,521 ,129 Economy Control Variable:
World Economy (S&P1000 Index)
581,255 192,055 ,168 3,027 ,003
APPENDIX C
C.1
Results alternative sample: Financial performance
C.1.1 Executive Remuneration = EFW
Table C1: Descriptive Statistics (EFW)
Mean Std. Deviation N Executive Fixed Wage 446.328,56 198.962,643 704 Financial Performance Indicator
(Percentage) 644,96 4.003,926 704
Company Control Variable:
Industry Classification 38,20 20,171 704 Company Control Variable: Size
(Total Assets) 3.304.592.963,42 7.649.277.214,910 704 Company Control Variable: Size
(Total Employees) 44.773,55 62.055,399 704 Board Control Variable:
Percentage Board Internationalization
30,64 27,711 704
Board Control Variable:
Percentage Board Stability 63,51 17,180 704 Executive Control Variable:
Executive Age 52,49 6,278 704
Executive Control Variable: Executive Nationality (0 = Dutch,
1=Foreigner)
,30 ,460 704
Economy Control Variable: Dutch
Economy (AEX Index) 412,96 105,451 704 Economy Control Variable: World
Economy (S&P1000 Index) 3.095,91 515,844 704 Table C2: Regression Model Summary (EFW)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,440(a) ,194 ,182 179.906,269
Table C3: Coefficients (EFW) Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. (Constant) 176675,086 99779,105 1,771 ,077 Financial Performance Indicator (Percentage) 2,560 1,813 ,052 1,412 ,158 Company Control Variable:
Industry Classification -1451,428 361,290 -,147 -4,017 ,000 Company Control Variable:
Size (Total Assets) 2,499E-06 ,000 ,096 2,531 ,012 Company Control Variable:
Size (Total Employees) ,540 ,123 ,168 4,385 ,000 Board Control Variable:
Percentage Board Internationalization
2216,606 318,225 ,309 6,966 ,000
Board Control Variable:
Percentage Board Stability -948,706 443,260 -,082 -2,140 ,033 Executive Control Variable:
Executive Age 4374,340 1115,281 ,138 3,922 ,000 Executive Control Variable:
Executive Nationality (0 = Dutch, 1=Foreigner)
-1568,795 18519,977 -,004 -,085 ,933 Economy Control Variable:
Dutch Economy (AEX Index) -34,331 71,847 -,018 -,478 ,633 Economy Control Variable:
World Economy (S&P1000 Index)
22,102 14,582 ,057 1,516 ,130
