PENGARUH KONEKSI POLITIK DAM KEPEMILIKAN INSTITUSIONAL TERHADAP REMUNERASI EKSEKUTIF DENGAN TATA KELOLA PERUSAHAAN SEBAGAI VARIABLE PEMODERASI (Studi Empiris pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2020)

This study aims to determine the effect of political connections and institutional ownership on executive board remuneration in Indonesia. In addition, this study also aims to determine the factors of Corporate Governance in weakening the influence of political connections on the remuneration of the executive board. The population of this research is companies listed on the Indonesia Stock Exchange in 2015 —2020 sampling using purposive sampling. The estimation method used was panel data regression and tested the hypothesis using EViews 10. Estimation using the Fixed Effect Model (FEM) after performing the Chow and Hausman tests. The results showed that Political Connections had a significant positive effect on executive remuneration. Therefore, the companies with political connections will provide higher remuneration packages to their executive boards compared to companies without political connections. Institutional ownership has a significant positive effect on executive remuneration. Thus, the greater the institutional ownership, the greater the remuneration package received by the executive. Corporate governance as measured by institutional ownership cannot weaken the influence of political connections on executive remuneration. The variable of corporate governance in this study is included in the predictor moderating variable.