Abstract: The purpose of this study is to know the effect of firm performance
measured by Return On Asset (ROA) and Net Profit Margin (NPM). Corporate
governance measured by independent commissioner and institusional ownership
and executive characteristics measured by age. This research employs multiple
linear analysis regression. The sample of this study covers 33 companies listed on
the LQ45 between 2013 and 2016 (124 observations) which is taken by purposive
samling method. The result of this study show that firm performance measure by
ROA have negative effect toexecutivecopensatin, firm performance measure by
NPM have negative effect to executive compensation. Corporate governance
measure by independent commissioner have no negative effect to executive
compensation and institutional ownership have negative effect to executive
compensation. Executive characteristics measure by age have no positive effect to
executive compensation.