Financial Characteristics that Determine the Value of Firms Ranked Highest for Executive Compensation in a Period of Economic Recession

This study provides a financial analysis of those firms that during the recent period of economic recession and financial market turmoil beginning in December 2007 and continuing to June 2009 either maintained or increased the total compensation packages for their chief executive officers and other executives in their firms. Specifically, this analysis will test for significant differences in the financial variables that determine value for those firms that awarded the highest total compensation packages during this period, and firms ranked lowest in executive compensation during the same period. A unique financial profile is established consisting of variables that measure the value of the firm. As in previous studies of this nature, Multiple Discriminant Analysis