PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2013 | 21 | nr 3 | 3--14
Tytuł artykułu

Executive Compensation : a Review of the Latest Research

Autorzy
Treść / Zawartość
Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
Purpose: The paper presents a review of the latest research on executive compensation and indicates the main problems and weaknesses of the existing solutions as well as trends for the future.

Methodology: In the analysis executive compensation constitutes a crucial element of corporate governance. The analysis is based on a review of the latest studies and research on the effectiveness of executive compensation referring to its size, structure and disclosure.

Findings: The paper presents the latest findings in the practice of executive compensation and it points to the extension of the period of time giving rise to the payment of cash bonuses, the introduction of a range of different indicators, based on which executives are evaluated, simplifying compensation packages, the implementation of deferred payments, the introduction of the "say on pay" rule and clawbacks.

Practical implications: The analysis points out the main weaknesses of executive compensation, which were particularly emphasized in research studies on companies affected by the financial crisis. The paper presents a wide range of suggested solutions that could be implemented in the field of executive compensation in order to provide for a better alignment of the interests of executives with those of shareholders and for the increase in shareholder value.

Originality/value: The paper attempts to identify the most severe corporate governance problems with reference to executive compensation and to confront them with research results as well as the recently proposed and implemented reforms and recommendations. (original abstract)
Rocznik
Tom
21
Numer
Strony
3--14
Opis fizyczny
Twórcy
  • Warsaw School of Economics, Poland
Bibliografia
  • AFL-CIO (2011). 2011 Executive pay watch. Dostępny na http://www.afl cio.org/corporatewatch/paywatch/index.cfm (13.12.2012).
  • Allen, F. and Gale, D. (2000). Comparing Financial Systems. Cambridge, Massachusetts: MIT Press.
  • Anderson, R. & Associates (2010). Risk management and corporate governance, OECD. Available at: http://www.oecd.org/corporate/corporateaffairs/corporategovernanceprinciples/42670210.pdf (16.12.2012).
  • Baker, H. and Anderson, R. (2010). Corporate governance: A synthesis of theory, research, and practice. John Wiley & Sons.
  • Bebchuk, L. and Fried J. (2003). Executive compensation as an agency problem. Journal of Economic Perspectives, 17: 71-92.
  • Bebchuk, L. and Fried, J. (2004). Pay without performance: unfulfi lled promise of executive compensation. Harvard University Press, DOI:10.5465/AMP.2006.19873407
  • Bebchuk, L. and Fried, J. (2010). Paying for long-term performance. University of Pennsylvania Law Review, 158: 1915-1959.
  • Bebchuk, L. and Grinstein, Y. (2005). The growth of executive pay. Oxford Review of Economic Policy, 21: 283-303.
  • Bebchuk L. and Spamann H. (2010). Regulating bankers' pay, Harvard John M. Olin Center for Law, Economics and Business, Discussion Paper No. 641. Available at: www.ssrn.com/abstract=1410072 (16.12.2012).
  • Bogle, J.C. (2009). Dość. Prawdziwe miary bogactwa, biznesu i życia. Warszawa: PTE.
  • Cai, J. and Walking, R. (2011). Shareholders' say on pay: Does it create value? Journal of Financial and Quantitative Analysis, 46: 299-339, DOI: http://dx.doi.org/10.1017/S0022109010000803.
  • Cheffi ns, B. (2009). Did corporate governance 'fail' during the 2008 stock market meltdown? The case of the S&P 500. The Business Lawyer, 65: 1-66.
  • Clarke, T. and Chanlat, J.F. (2009). Introduction: A new order? The recurring crisis in Anglo-American corporate governance and the increasing impact on European economies and institutions. In: Clarke, T. and Chanlat, J.F. (ed.), European corporate governance. Readings and perspectives. London: Routledge: 1-42.
  • Clementi, G. and Coley, T. (2009). Executive compensation: facts. NBER. Available at: http://www.nber.org/papers/w15426.pdf (16.12.2012).
  • Cohan, W. (2010). House of cards. New York: Anchor Books.
  • European Parliament (2010). Directive 2010/76/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies (CRD III EU Directive). Official Journal of the European Union, 239/3. Available at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:329:0003:0035:en:PDF (16.12.2012).
  • Fama, E.F. and Jensen, M.C. (1983a). Separation of ownership and control. Journal of Law and Economics, XXVI.
  • Fama, E.F. and Jensen M.C. (1983b). Agency problems and residual claims. Journal of Law and Economics, XXVI.
  • Farrell, G. (2010). Crash of the titans: Greed, hubris and the fall of Merrill Lynch and the near-collapse of Bank of America. New York: Crown Publishing Group, Random House.
  • Ferri, F. and Maber, D. (2013). Say on pay votes and CEO Compensation: Evidence from the UK. Review of Finance, DOI:10.1093/rof/rfs003.
  • FRC (2010). Implementation of the UK stewardship code. London. Available at: http://www.frc.org.uk/FRC-Documents/FRC/Implementation-of-the-UK-Stewardship-Code.aspx (16.12.2012).
  • Frydman, C. and Jenter, D. (2010). CEO compensation. Rock Center for Corporate Governance at Stanford University Working Paper No. 77. Available at: http://ssrn.com/abstract=1582232 (24.02.2013).
  • Gillespie, J. and Zweig, D. (2010). Money for nothing. How the failure of corporate boards is ruining American business and costing us trillions. New York: Free Press.
  • Griner, E. (1995/96). Corporate performance, stock option and measurement error in CEO pay. Journal of Applied Business Research, 12(1): 1-9.
  • Henderson, M. (2008). Paying goes in bankruptcy: executive compensation when agency costs are low. Northwestern University Law Review, 101(4). Available at: http://ssrn.com/abstract=927081 (16.12.2012).
  • Hill, J. and Yablon, C. (2002). Corporate governance and executive remuneration: Rediscovering managerial positional conflict. University of New South Wales Law Journal, 25: 294-334.
  • House of Commons, Treasury Committee (2009). Banking Crisis: reforming corporate governance and pay in the City, Ninth Report of Session 2008-09.
  • Isaksson, M. (2009). Corporate governance and the financial crisis: Questions and answers, OECD. Available at: http://www.oecd.org/document/49/0,3343,en_2649_34813_43063537_1_1_1_1,00.html (16.12.2012).
  • Jensen, M. and Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4): 305-360.
  • Jensen, M. and Murphy, K. (1990). Performance pay and top management incentives. Journal of Political Economy, 98(2): 225-263. Available at: http://ssrn.com/abstract=94009 (16.12.2012).
  • Johnson, S., Ryan, H. and Tian, Y. (2010). Managerial incentives and corporate fraud: the sources of incentives matter. Available at: www.ssrn.com/abstract=395960 (16.12.2012).
  • Kansas, D. (2009). Guide of the end of Wall Street as we know it. New York: Collins Business.
  • Kirkpatrick, G. (2009). The corporate governance lessons from the financial crisis, OCED. Available at: http://www.oecd.org/dataoecd/32/1/42229620.pdf (16.12.2012).
  • Koładkiewicz, I. (2010). Historia kołem się toczy - czas reform w sferze nadzoru korporacyjnego ponownie się zaczął. Master of Business Administration, 3(104): 86-95.
  • Mallin, Ch. (2004). Corporate governance. Oxford: Oxford University Press.
  • Mikołajek-Gocejna, M. (2010). Wynagrodzenie menedżerów - pierwsze wnioski płynące z kryzysu. Master of Business Administration, 3(104): 96-104.
  • Monks, R. and Minow, N. (2004). Corporate governance. Blackwell Business.
  • Nestor Advisors (2009). Governance in crisis: A comparative case study of six US investment banks, NeAD Research Note 0109. London. Available at: http://www.nestoradvisors.com/wp-content/uploads/USBank09.pdf (16.12.2012).
  • Posner, R. (2010). The crisis of capitalist democracy. London: Harvard University Press.
  • Rost, K. and Osterloh, M. (2009). Management fashion payfor-performance for CEOs. Schmalenbach Business Review, 61: 119-149.
  • SEC (2010). Wall Street Reform and Consumer Protection Act. Available at: http://www.sec.gov/about/laws/wallstreetreform-cpa.pdf (16.12.2012),
  • U.K. Treasury (2009). A review of corporate governance in UK banks and other financial industry entities: Final recommendation (Walker Review). Available at: http://www.hmtreasury.gov.uk (16.12.2012).
  • Urbanek, P. (2010). Kryzys finansowy a polityka wynagradzania menedżerów. In: Urbanek, P. (red.), Nadzór korporacyjny w warunkach kryzysu gospodarczego. Łódź: Wydawnictwo Uniwersytetu Łódzkiego: 83-96.
  • Wolf, B. (1999). The effects of agency problems on the financial behavior, performance and efficiency of German industrial stock corporations, Peter Lang Europäischer Verlag der Wissenschaften.
  • Wynagrodzenia menedżerów banków przyczyniły się do powstania kryzysu. Available at: http://www.europarl.europa.eu/sides/getDoc.do?type=IM-PRESS&reference=20100528STO75183&language=PL (16.12.2012).
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171242647

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.