This paper aims to examine the relationship between executive compensation and financial performance of Palestinian corporations. The study uses a panel data for 41 firms for the period from 2014 to 2017. The results revealed a positive relationship between executive compensation and financial performance measured by return on assets, and sales revenues, while other measures of performance did not show any relationship with executive compensations like earnings per share. The results should be taken with caution. The small sample size limits the ability to draw strong conclusions hence; future research should overcome this obstacle and expand the scope and scale of investigation in this context.