With the notable exceptions of Hempel and Fay (1994),
Boyd (1996) and Cordeiro et al. (2000), most previous literature
focuses on CEO and executive compensation, so little
is known about the determinants of the pay of other senior
personnel. However, rapid growth in director compensation
has caused a big controversy, since directors serving on the
compensation committee can determine the level and mix
of their own compensation packages (Cordeiro et al., 2000).