EVA, MVA and CEO Compensation: Further Evidence

Baum, Charles L.; Sarver, Lee; Strickland, Thomas
June 2004
American Business Review;Jun2004, Vol. 22 Issue 2, p82
Academic Journal
The aim of this study is to analyze the relationship between a company's performance, measured by Economic Value Added (EVA) and/or Market Value Added (MVA), and the compensation of its chief executive officer. The study also considers whether any relationship between compensation and performance might vary by industry. The results show MVA to be more closely related to executive compensation than is EVA, having a positive and significant association with each component of compensation.


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