Summary The purpose of this research is to investigate the link between executive salary and the financial performance of Palestinian businesses. The research is based on panel data from 41 companies from 2014 to 2017. Financial performance was measured by ROA, EPS, and sales, while executive remuneration was derived straight from yearly reports. The results of a GLS estimator demonstrated a favorable link between executive compensation and financial performance as defined by return on assets and sales, but no relationship between executive compensation and EPS. The findings should be interpreted with caution because earnings management methods may have influenced them. Furthermore, the tiny sample size makes it difficult to draw firm conclusions. As a result, future research should overcome this barrier and broaden the breadth and size of study in this area. Keywords: Management compensation, firm performance, Palestinian corporations.