Corporate Governance Issues in Executive Compensation: The Indian Experience (200882012)

The aim of this study is to examine whether multiple large shareholders held by the company can affect the relation between accounting performance and executive compensation, using panel data of all publicly company in Indonesia (except financialand mining industries) with the research period 2017-2019. The result shows that the existence of 2nd largest shareholders that owns more than 10% stocks and also if the board has representation from 2nd largest shareholders in the company, it can reduce the positive effect of accounting performance to executive compensation. This research findings could be as an additional literature in financial accounting and corporate governance area, and also for practitioners in Indonesia that if a firm has good controlling function from multiple large shareholders, it can reduce the opportunistic discretion from executive management if the company has performance evaluation based on earnings.

Download Full-text

The role of corporate governance in executive compensation system

Corporate Ownership and Control ◽

10.22495/cocv12i4c4p5 ◽

2015 ◽

Vol 12 (4) ◽

pp. 467-479

Author(s):

Yusuf Mohammed Nulla

Keyword(s):

New York ◽

Corporate Governance ◽

Executive Compensation ◽

Research Study ◽

Stock Exchange ◽

Pearson Correlation ◽

New York Stock Exchange ◽

Statistical Regression ◽

Toronto Stock Exchange ◽

York Stock Exchange

This research study explores the relationship between the executive compensation and corporate governance among the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX/S&P) companies from 2005 to 2010. The quantitative research method was selected for this research study. The eighty largest companies from the New York Stock Exchange and the Toronto Stock Exchange were selected. The random sample method was used to select the two populations from each index. The research question for this research study was: is there a relationship between CEO cash compensation and corporate governance among the Toronto Stock Exchange and the New York Stock Exchange companies. The four statistical regression models found that there was a weak relationship between corporate governance and executive compensation among the TSX/S&P and the NYSE populations. Also, the Pearson correlation results indicated that the corporate governance has a minimal role towards the determination of the executive compensation

Download Full-text

Corporate Governance, Agency Problems, and Executive Compensation

Too Much Is Not Enough ◽

10.1093/acprof:osobl/9780199829583.003.0002 ◽

2012 ◽

pp. 24-44

Author(s):

Robert W. Kolb

Keyword(s):

Corporate Governance ◽

Executive Compensation ◽

Agency Problems

Download Full-text

Positive Corporate Governance and its Implications for Executive Compensation

German Law Journal ◽

10.1017/s2071832200004314 ◽

2005 ◽

Vol 6 (12) ◽

pp. 1777-1804 ◽

Cited By ~ 7

Author(s):

James McConvill

Keyword(s):

Corporate Governance ◽

Executive Compensation ◽

Best Practice ◽

Pay For Performance ◽

Negative Perception ◽

High Profile ◽

Exponential Increase ◽

Self Interest ◽

The Common ◽

Common Perception

As a result of a series of high-profile corporate collapses worldwide, along with regular reporting of shareholder money being spent on corporate jets, executive golf days and increasingly excessive executive compensation arrangements, the common perception is that the executives of our largest corporations are driven by self-interest with little regard for what is best for the corporation. Due to this negative perception, there has been an exponential increase in the amount of laws, rules and guidelines setting in place a heightened standard of corporate governance best practice. Without such regulation, it is believed, another collapse or scandal is inevitable. In this article, I dispute this reasoning. In my view if we embrace “positive corporate governance”, in which the positive strengths and virtues of company executives are emphasised, we can move towards an environment in which heavy regulation is replaced by positive corporate norms inside the corporation. I then apply my approach of positive corporate governance to address one of the most significant issues confronting corporate regulation at present- how to deal with the rapid increase in executive compensation in our largest corporations. I suggest that the dominant methodology of pay for performance is ultimately flawed.

Download Full-text

A Literature Review of the Perspectives of CEO Pay: An Analysis of Issues and Controversies

Journal of Public Administration and Governance ◽

10.5296/jpag.v8i4.13817 ◽

2018 ◽

Vol 8 (4) ◽

pp. 44

Author(s):

Faitira Manuere ◽

Precious Hove

Keyword(s):

Corporate Governance ◽

Literature Review ◽

Executive Compensation ◽

Ceo Compensation ◽

Executive Pay ◽

The Core ◽

Good Corporate Governance ◽

Ceo Pay ◽

Conceptual Background

The purpose of this paper is to review the literature on various theories that are used in organisations today to determine executive compensation. This paper analyses the relevance of the theories that are used to determine CEO compensation in modern corporations. The paper makes an attempt to review extensively the literature on CEO compensation. This paper looks at the concerns of sixteen theories of executive compensation. This paper further analyses the special features that are associated with CEO pay. These features help us to understand the problems that experts on executive pay experience when they try to define the exact CEO pay when compared to other rewards that are non financial. The drivers of executive pay are quantified and qualified in order to provide the conceptual background needed to understand the core factors that determine executive pay. Therefore the role of institutional investors in driving managerial salary is explored in detail. Finally, the effects of firm size and good corporate governance on executive pay are carefully analysed.

Download Full-text