Purpose -This paper aims to examine the relation between executive compensation, firm size and firm performance on a panel of the so-called “new economy” firms in the USA over the period 1996-2002. Design/methodology/approach -The authors use two measures of performance, total shareholder...

Purpose – This paper aims to examine the relation between executive compensation, firm size and firm performance on a panel of the so‐called “new economy” firms in the USA over the period 1996‐2002. Design/methodology/approach – The authors use two measures of performance, total...