Chief Executive Officer Compensation and Firm Value in African Countries: A Systematic Literature Review

This paper systematically reviews the moot field of chief executive officer (CEO) compensation and firm value to clarify underlying factors that explain the inconsistencies in outcomes relating to studies on the link between CEO pay and firm value- with special emphasis on firms trading on African bourses. Using a composite approach that entails a bibliometric analysis and a theme-based method, it examines 47 peer-reviewed journal articles published between 2019-2024, focusing on selected African countries, articles, authors and themes in CEO compensation and firm value. The study introduces a thematic framework that summarises core elements of the CEO pay-performance relationship, providing a basis for further research. This research maps out the valuation approaches, corporate governance, pay-performance sensitivity, short-termism vs long-termism and suggests an integrated approach for advancing knowledge on CEO remuneration and firm value studies by analysing and synthesising a vast array of studies conducted in Africa