EMPIRICAL INVESTIGATION OF THE NEXUS BETWEEN FIRM COMPENSATION POLICY AND OWNERSHIP STRUCTURE IN NIGERIA LISTED FIRMS

The study focused on the empirical investigation of the nexus between firm compensation policy and ownership structure in Nigeria listed firms. The objectives of the study were to investigate the relationship between employee compensation policy, management compensation policy and chairman compensation policy and ownership structure. The ex-post-facto design was employed for the collection of secondary data from listed Consumer Goods Firms in Nigerian Exchange Group for the period of 2016 to 2022 and analysed using descriptive statistics, Pearson correlation matrix, variance inflation, heteroskedaticity test, Ramsey Reset test and multivariate regressions technique. The results showed that employee compensation policy has positive and no significant relationship with ownership structure at p-value >0.05. Managerial compensation policy has positive and no significant relationship with ownership structure at p-value >0.05. Chairman compensation policy has negative and no significant relationship with ownership structure at p-value >0.05.The study recommended that ownership structure change skewed to foreign shareholding would strongly improve the employee compensation over time, and also recommended that institutional change of ownership structure would contribute positively to employee compensation in the long-run.