ceo and executive director remuneration and firm performance pdf

Ceo and executive director remuneration and firm performance pdf

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Looking Backward: Pay for Performance in the 1930s

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Executive compensation

This paper examines the relationshipamong company performance, corporategovernance arrangements, and CEO compensationwithin the Scandinavian countries of Norway andSweden. Our sample consists of tradedcompanies, of which are from Norway and from Sweden. The empirical evidence fromboth Norway and Sweden reveals significantpositive relationships among board size andCEO compensation, foreign board membership andCEO compensation, and market capitalization andCEO compensation. In addition, no significantrelationship is found between companyperformance and CEO compensation or CEO tenureand CEO compensation, except in the case ofNorwegian firms when a change in market-to-bookperformance measure is used. Despite itslimited geographical scope, the study adds toour general understanding of internationalcorporate governance issues.

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Executive compensation is composed of both the financial compensation executive pay and other non-financial benefits received by an executive from their employing firm in return for their service. It is typically a mixture of fixed salary, variable performance-based bonuses cash, shares or call options on the company stock and benefits and other perquisites all ideally configured to take into account government regulations, tax law, the desires of the organization and the executive. The three decades from the s saw a dramatic rise in executive pay relative to that of an average worker's wage in the United States, [2] and to a lesser extent in a number of other countries. Observers differ as to whether this rise is a natural and beneficial result of competition for scarce business talent that can add greatly to stockholder value in large companies, or a socially harmful phenomenon brought about by social and political changes that have given executives greater control over their own pay. The rate of executive pay is an important part of corporate governance , and is often determined by a company's board of directors. In a modern corporation, the CEO and other top executives are often paid a salary, which is predetermined and fixed, plus an array of incentives bonuses commonly referred to as the variable component of the remuneration package.

Looking Backward: Pay for Performance in the 1930s

Skip to Main Content. A not-for-profit organization, IEEE is the world's largest technical professional organization dedicated to advancing technology for the benefit of humanity. Use of this web site signifies your agreement to the terms and conditions. The impact of corporate governance and firm performance on chief executive officer's compensation: Evidence from central state owned enterprises in India Abstract: This paper looks at corporate governance in terms of board characteristics such as board size and proportion of independent or non executive directors and performance of the firm in determining the chief executive officer's CEO compensation. We have taken central state owned enterprises SOEs for our study for the year

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PDF | Purpose – This paper develops a discussion looking at whether CEO and Executive Director Remuneration have an impact on Firm Performance. | Find.


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Data were generated from annual report and account of the listed insurance companies in Nigeria. For the purpose of this study, the population entails all insurance companies listed on the floor of the Nigerian stock exchange as at 31 st December , out of which 19 were picked as the working population using census sampling. It was recommended that, insurance companies should look inward to identify different strategies for motivation to continue to enhance performance. Quick jump to page content.

Executive compensation

In the wake of certain corporate scandals, many stakeholders are questioning if current high levels of executive remuneration, world-wide, are in fact related to company performance. After the implementation of King III in , there has been an expectation that governance has improved in South African companies. If so, empirical testing should find executive remuneration to be positively related to forms of performance that reflect an increase in company value, like Tobin's Q, or return on assets, rather than measures such as total revenue. Agency theory predicts that if executive remuneration is not carefully designed to maximise the value of the company, executive directors will tend to maximise revenue instead. To test this prediction, hand-collected panel data from Johannesburg Stock Exchange company reports are linked to company performance data to test this prediction, across the years —, post King III. Results challenge certain important assumptions.

The arrival of spring means yet another round in the national debate over executive compensation. Soon the business press will trumpet answers to the questions it asks every year: Who were the highest paid CEOs? How many executives made more than a million dollars? Who received the biggest raises? Political figures, union leaders, and consumer […]. Political figures, union leaders, and consumer activists will issue now-familiar denunciations of executive salaries and urge that directors curb top-level pay in the interests of social equity and statesmanship. The critics have it wrong.

CEO Incentives—It’s Not How Much You Pay, But How

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