Determinants of CEO Compensation. Chief executive officer (CEO) compensation varies significantly from firm to firm. For this exercise, you will report on a sample of firms from a survey by Forbes magazine to establish important patterns in the compensation of CEOs. Specifically, introduce a regression model that explains CEO salaries in terms of the firm’s sales and the CEO’s length of experience, education level, and ownership stake in the firm. Among other things, the model should show that larger firms tend to pay CEOs more and that, somewhat surprisingly, CEOs with more education earn less than otherwise comparable CEOs. In addition to establishing important influences on CEO compensation, the model should be used to predict CEO compensation for salary negotiation purposes.