EXECUTIVE COMPENSATION AND CASH DIVIDEND PAYMENT OF LISTED OIL AND GAS COMPANIES IN NIGERIA

This study examined the relationship between executive compensation and cash dividend of listed oil and gas companies in Nigeria for the period from 2009 to 20 J 8. The study adopted an Ex-post facto research design. The population of the study was all the twelve (J2) oil and gas companies listed on the floor of the Nigerian Stock Exchange. The total numbers of firms were derived from the Nigerian Stock Exchange (NSE) fact book as at 20 J 8. The sample size of the study was eight (8) oil and gas companies listed on the Nigeria stock exchange. The study used panel regression technique of data analysis. The result of the analysis revealed that executive stock has a positive and significant association with cash dividend of listed oil and gas companies in Nigeria. Therefore, the study concluded that there is significant relationship between executive stock and cash dividend payout. From the result, the overall constant result revealed a significant effect; hence the study concludes that executive compensation has a significant relationship with dividend payment of listed oil and gas companies in Nigeria. The result shows that executive stock has a positive effect on dividend payment. That means increase in the ownership of stock by the executive will increase the level at which the management optimize the.payment of dividend, it is there recommended that more shares should be issued to the executive members in order for shareholders to be smiling home after their annual general meetings. The negative effect of firm age shown in the analysis could be because of the management policy on equipment. The more money that is meant for payment of dividend is retained for replacement of equipment or maintenance of the old ones, the fewer dividends will be paid to shareholder. It is therefore recommended that, management of oil and gas companies should adopt more appropriate method of depreciation for optimum benefit to both shareholders and the management.