Remuneration Committee, Remuneration of Executives and Firm Performance: An Empirical Study from Pakistan

Pakistan is in the process to update the role of the remuneration committee, however, little is known about the role of the remuneration committee in Pakistan's non-financial listed firms. This study investigated the impact of the remuneration & HR committee on the remuneration of the CEO, directors, executives, all (CEO, directors, executives), and auditor. Further, this study also explores the influence of the remuneration & HR committee on firm performance. This study used data between 2009 and 2017. For analysis, this study used OLS regression with cross-section fixed effects. Our findings suggest remuneration in presence of remuneration & HR committee, minimizes the conflict of interest between management and shareholders, further remuneration payments impact positively on firm performance. This study reveals the role of the remuneration & HR committee, which suggest incorporation improves the corporate governance and firm performance in Pakistan.