Executive Compensation, Human Capital Efficiency and Financial Performance of Listed Conglomerates in Nigeria

The study examined “the moderating effect of human capital efficiency on the relationship between executive compensation and financial performance of listed conglomerates in Nigeria between 2016 and 2025. Three variables were chosen as independent indices; including total executive compensation, chairman’s sitting allowance and highest paid director, tobin-Q was the dependent variable while human capital efficiency was used as the moderating variable. The analysis started with examining the characteristics of the data series by testing their normality and correlation. Analysis from the study using Random Effects Model of Panel Least Squares regression on e-views 10 showed that all the independent variables are insignificantly positive in explaining the movement in financial performance of listed conglomerates in Nigeria. The model also revealed that human capital efficiency was insignificant in moderating the relationship between executive compensation and firm performance. The study therefore concluded that the effect of executive compensation on firm performance is not strong enough to establish a significant predictive relationship, and that human capital efficiency does not moderate the relationship between executive pay and firm performance. Based on these findings, the study recommended that the Conglomerate Firms should ensure that all executives are paid their due compensation yearly, while they should also strengthen the relationship between executive compensation and financial performance indicators.

Executive Compensation, Chairman’s Sitting Allowance

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