A.ove are the results from a regression of CEO salary in thousands of U.S. dollars on return on equity (roe) as a percentage (i.e, 18%, not 0.18 ), sales in millions of U.S. dollars, and a binary variable for whether the firm is in the finance industry. What is the appropriate interpretation of the coelficient on return on equity? For a one percentage point increase in retum on equity, estimated CEO salary is about 21% higher, controlling for sales and whether the CEO 's firm is in the financial industry. CEOs that generate positive return on equity earn $21,000 more than CEOs that do not generate posithe return on equity, controlling for sales and whether the CEO's form is in the financtaf industry. For a one percentage point increase in return on equity, estimated CEO salary is about $21,000 higher, controling for sales and whether the CEO s firm is in the financial industry. For a one percentaze point increase in return on equily, estimated CEO salary is about $21 higher, controlling for sales and whether the CEO s firm is in the financial industry