Effect of corporate governance on the top management team compensation

2012 ◽  
Vol 4 (1) ◽  
Author(s):  
Karima DHAOUADI
Keyword(s):  
Corporate Governance ◽  
Top Management Team ◽  
Management Team ◽  
Top Management

scholarly journals Corporate governance is directors making decisions: reforming the outward foundations for inside decision making

2004 ◽  
Vol 2 (1) ◽  
pp. 129-136 ◽  
Author(s):  
Michael Useem
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Top Management Team ◽  
Executive Leadership ◽  
Strategic Thinking ◽  
Management Team ◽  
Top Management ◽  
Board Leadership ◽  
The Right

If companies do have the right directors and practices in place, they will benefit from board leadership along with executive leadership. Great leadership is required of the top management team, but it is equally essential from those who are ultimately responsible for the team and the fate of the firm. Good decisions premised on strategic thinking and followed by timely execution will give the board what it needs to give the investors what they deserve.

Corporate Governance and Top Management Team Demographic: A Longitudinal Analysis of Their Effects on Innovation

1997 ◽  
Vol 01 (02) ◽  
pp. 111-121
Author(s):  
G. Steven McMillan ◽  
Sam Beldona
Keyword(s):  
Corporate Governance ◽  
Educational Level ◽  
Top Management Team ◽  
Management Team ◽  
Future Research ◽  
Pharmaceutical Companies ◽  
Top Management ◽  
Outside Directors ◽  
The Impact ◽  
Innovation Outcomes

This paper examines the impact that the educational level of a company's outside directors and top management team (TMT) has on the firm's commitment to innovation and its innovation outcomes. A 13-year study of 17 pharmaceutical companies was conducted. The results show that TMT demographics are significant predictors of commitment to innovation, while the demographics of outside directors predict outcomes in innovation. The future research opportunities of these findings are discussed.

CEO reputation and top management team compensation

2014 ◽  
Vol 52 (3) ◽  
pp. 540-558 ◽  
Author(s):  
Gregorio Sanchez-Marin ◽  
J. Samuel Baixauli-Soler
Keyword(s):  
Corporate Governance ◽  
Top Management Team ◽  
Listed Companies ◽  
Management Team ◽  
National Commission ◽  
Top Management ◽  
Governance Mechanisms ◽  
Governance System ◽  
Content Type ◽  
Top Managers

Purpose – The purpose of this paper is to clarify the influence of chief executive officer (CEO) reputation on top management team (TMT) compensation, proposing corporate governance characteristics as a moderator of the relationships between the power of top managers to extract rents and the importance of external signals. The study aims to expand the domain of executive compensation literature by including the role of CEO reputation in the context of non-Anglo-Saxon corporate governance systems. Design/methodology/approach – The paper opted for a panel methodology for the period 2004-2009, including 534 observations from Spanish listed companies. Data were obtained from several sources. Compensation and governance information was obtained from the Spanish Stock Exchange National Commission; data regarding CEO reputation were obtained from Spanish Corporate Reputation Monitor, and, finally, financial statement was obtained from the OSIRIS database. Findings – The paper provides empirical insights on the CEO reputation diffusion on TMT compensation, showing different scenarios depending on effectiveness of corporate governance. CEO reputation diffusion on TMT pay is strengthened or weakened by the organizational governance effectiveness. General evidence supports the notion that in countries characterized by an incomplete corporate governance system, boards – and also indirectly the structure of ownership – act as a catalyst for external signs of legitimacy, rather than for the organization's and stakeholders’ interests. Research limitations/implications – Because of the difficulty in pooling information for a long period from three different sources of data, the number of observations is not very large. Therefore, researchers are encouraged to test the proposed propositions further using other context of corporate governance. Practical implications – The paper includes implications for the development of effective governance mechanisms which promote an adequate link between the CEO reputation and the TMT compensation, avoiding rent extractions. Originality/value – The paper contributes to new international evidences regarding relations between top managers’ reputations and compensation. Specifically, it allows reinforcement of the importance of institutional arguments in the understanding of the effectiveness of governance mechanisms in large listed companies.

scholarly journals Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

Agriculture ◽  
2021 ◽  
Vol 11 (11) ◽  
pp. 1135
Author(s):  
Cristina Fenoy-Castaño ◽  
María J. Martínez-Romero ◽  
Rubén Martínez-Alonso
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Family Firms ◽  
Top Management Team ◽  
Gender Diversity ◽  
Management Team ◽  
Top Management ◽  
Governance Structures ◽  
Business World ◽  
Female Presence

Family firms form the backbone of most of the world’s economies. While the issues surrounding family firms are diverse, gender diversity and its impact on the strategic and financial decisions of such firms is a topic that has generated significant debate in recent years. In particular, one of the most crucial unresolved questions is whether or not increasing the female presence in the family firms’ corporate governance bodies would be beneficial for improving their internal functioning. To shed new light on these issues, our study aims to examine the influence of gender diversity on the level of indebtedness of Spanish agri-food family firms. Specifically, and applying a risk-aversion perspective, the research goal is to analyse whether the female presence in corporate governance structures (board of directors, top management team and general shareholders’ meeting) influences the level of firm indebtedness. To test the suggested relationships, ordinary least square regression models were applied to a sample of 137 firms. The final sample was obtained by combining quantitative data from the SABI database and qualitative data from a survey conducted by the Spanish Institute of Family Firms and the Spanish Network of Family Business Chairs. This study reveals an inverse relationship of female presence in the board of directors, in the top management team, and in the general shareholders’ meeting on the level of indebtedness of Spanish agri-food family firms. In other words, the findings show that female presence in corporate governance structures contributes to enhanced business management behaviour and, thus, to a better utilisation of firms’ financing strategies. The obtained results have very important practical and social implications, insofar as they contribute to the building of a more inclusive and sustainable business world, aimed at reducing gender inequality at top positions in firms.

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