Abstract

Increased uncertainty in the economic and business environments have placed IS function and IS leadership in a quandary today. In this paper, we empirically examine the remuneration of CIOs, and examine their association with firm performance, size and industry membership. Based on compensation data of 213 CIOs in 2002, we test several hypotheses linking the total, annual cash, and long term components of the CIO compensation with firm and industry variables. Our results indicate a strong relationship between CIO compensation and performance, firm size, and industry membership. Firm performance exhibited a strong positive association with all components of CIO pay. Firm size was found to have significant positive association with the total pay and the annual cash components. We also found support for association between specific industry memberships (finance and insurance, manufacturing, and professional services) and CIO pay.

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