THE DETERMINANTS OF CEO's COMPENSATION IN RETAILING

CEOs' compensation has received a great deal of attention in recent years. Some criticised that CEOs' compensation is not responsive to their performance, because some CEOs still received the same or more compensation even if their companies incurred losses. Others complained that the compensation received by some of the CEOs was so astronomical that it can not be justified with any rational explanations. Many also maintained that some CEOs do not care about employees' wellbeing and shareholders' interest in the determination of their compensation in view of the facts that many workers received pay cuts or declining compensation in real terms and are laid off in the re‐structuring of organisations in order for firms to become more competitive domestically and worldwide.