Download or read book Corporate Governance and Remuneration Systems written by Klaudia Blizek and published by GRIN Verlag. This book was released on 2011-12 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2004 in the subject Business economics - Accounting and Taxes, grade: 82/100, course: Business English, language: English, abstract: Governance refers to the processes and structure by which the business and affairs of the company are directed and managed. The primary objective of sound corporate governance is to contribute to improved corporate performance and accountability in creating long term shareholder value. The main objective of this term paper is a brief overview of possibilities to give the board of directors reasons for improving the long term shareholder value. In order to achieve this goal the second chapter of this term paper deals with the concept of corporate governance itself. In taking a closer look at some basic approaches the main tasks and individual and team objectives should be brought out. The third chapter deals with the so-called principal-agent-problem. The essence of the agency-problem is the separation of ownership und control or the conflict of interests among owners and managers. Chapter four introduces remuneration systems which are qualified to solve the agency problem and satisfy both: owners and managers of a company. Finally, chapter five concludes the paper.

Download or read book The Theory and Practice of Directors Remuneration written by and published by Emerald Group Publishing. This book was released on 2016-01-06 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book argues for a correct balance between risk and reward and for Directors' remuneration to be equitable to all parties and stakeholders. By examining the current theories, practices and regulations and explaining them in detail it provides a state of the art overview of one of the key corporate governance issues of our time.

Download or read book Executive Remuneration and Employee Performance Related Pay written by Tito Boeri and published by OUP Oxford. This book was released on 2013-03-28 with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent financial crisis has created a public outcry over top-executive pay packages and has led to calls for reform of executive pay in Europe and the US. The current controversy is not the first - nor will it be the last - time that executive compensation has sparked outrage and led to regulation on both sides of the Atlantic. This volume compares US and European CEOs to trace the evolution of executive compensation, its controversies and its resulting regulations. It shows that many features of current executive compensation practices reflect the, often-unintended, consequences of regulatory responses to perceived abuses in top-executive pay, which frequently stem from relatively isolated events or situations. Regulation creates unintended (and usually costly) side effects and it is often driven by political agendas rather than shareholder value. Improvements in executive compensation are more likely to come from stronger corporate governance, and not through direct government intervention. The volume also examines the effects of incentive schemes and the patterns of performance related pay both within and across countries. It documents a number of empirical regularities and discusses whether government should intervene to support the implementation of incentive pay schemes. It argues that it makes little sense to undertake reform without detailed simulations of the effect on the economy under alternative economic scenarios, based on sound analysis and extensive discussion with labour, management, and government decision-makers.

Download or read book Pay without Performance written by Lucian Bebchuk and published by Harvard University Press. This book was released on 2006-09-30 with total page 293 pages. Available in PDF, EPUB and Kindle. Book excerpt: The company is under-performing, its share price is trailing, and the CEO gets...a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers' influence over their own pay--and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders. Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm's length with the executives they are meant to oversee. They give a richly detailed account of how pay practices--from option plans to retirement benefits--have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives' unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers' incentives. This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.

Download or read book Corporate Governance Matters written by David Larcker and published by FT Press. This book was released on 2011-04-14 with total page 497 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Governance Matters gives corporate board members, officers, directors, and other stakeholders the full spectrum of knowledge they need to implement and sustain superior governance. Authored by two leading experts, this comprehensive reference thoroughly addresses every component of governance. The authors carefully synthesize current academic and professional research, summarizing what is known, what is unknown, and where the evidence remains inconclusive. Along the way, they illuminate many key topics overlooked in previous books on the subject. Coverage includes: International corporate governance. Compensation, equity ownership, incentives, and the labor market for CEOs. Optimal board structure, tradeoffs, and consequences. Governance, organizational strategy, business models, and risk management. Succession planning. Financial reporting and external audit. The market for corporate control. Roles of institutional and activist shareholders. Governance ratings. The authors offer models and frameworks demonstrating how the components of governance fit together, with concrete examples illustrating key points. Throughout, their balanced approach is focused strictly on two goals: to “get the story straight,” and to provide useful tools for making better, more informed decisions.

Download or read book Corporate Governance 1e written by Steen Thomsen and published by McGraw Hill. This book was released on 2012-04-16 with total page 393 pages. Available in PDF, EPUB and Kindle. Book excerpt: This exciting new text provides a complete introduction to Corporate Governance. It deals with the control and direction of companies by boards, owners and company law, and also looks at the mechanisms of governance and the different governance systems around the world. Part 1: is a non-technical overview of the relevant theories, governance mechanisms and the country models.Part 2: looks at some of the most important governance mechanisms in detail.Part 3: studies individual international corporate governance systems.Part 4: wraps up with a discussion on governance practices.

Download or read book Pay Without Performance written by Lucian A. Bebchuk and published by Harvard University Press. This book was released on 2004 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: The company is under-performing, its share price is trailing, and the CEO gets...a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers' influence over their own pay--and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders. Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm's length with the executives they are meant to oversee. They give a richly detailed account of how pay practices--from option plans to retirement benefits--have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives' unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers' incentives. This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.

Download or read book Comparative Corporate Governance and Executive Remuneration written by Simon Staude and published by GRIN Verlag. This book was released on 2015-09-10 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2014 in the subject Business economics - Investment and Finance, , language: English, abstract: The justification of a company having a remuneration committee (hereinafter “RemCo”) is simple and based on the “agency theory” whereby directors are employed to act as proxies for shareholders and manage a companies’ business on their behalf. However, their powers allow them to manage the business in a manner, which facilitates their own interests. Excessive remuneration and bonus schemes are probably the most controversial outcomes which may be considered as a result of this principle. The UK Corporate Governance Code (hereinafter “the Code”) has tried to deal with this issue, providing principles to establish an appropriate level of remuneration for directors and to align this remuneration with the interest of the shareholders. However, the salaries of CEOs of FTSE100 companies have increased significantly over the last ten years. This is supported by a recent Manifest survey which shows that FTSE100 RemCos still grant remuneration packages above the inflation rate and the average pay increase of employees. As the level of remuneration has increased considerably in recent years, it is indeed questionable whether multi-million salaries for directors can be justified when taking into account economic or fairness reasons and whether RemCos undertake their responsibilities properly. As well as providing the theoretical and legal background and the rationale behind the establishment of RemCos Section 1 of this essay questions the level of remuneration and assesses, whether it can be justified on economic or fairness grounds. Whereas Section 2 shows that the RemCos are not solely responsible for the ratcheting up of executive payments since external factors such as pay consultants influence the remuneration design. The essay demonstrates that the current way RemCos undertake their responsibilities raise major concerns and leaves room for improvement. Section 3 evaluates the recent reforms, such as enhanced disclosure requirements related to the role of remuneration consultants and suggests that these reforms are the first step in the right direction to re-balance executive remuneration but will also show that the execution of these reforms can be considered as rather poor and will have little effect. The essay concludes finally that remuneration committees are only partly responsible for increasing remuneration levels and that further reforms are still necessary.

Download or read book Global Compensation written by Luis Gomez-Mejia and published by Routledge. This book was released on 2008-08-06 with total page 247 pages. Available in PDF, EPUB and Kindle. Book excerpt: Part of Routledge’s Global HRM series, this unique new text gives an in-depth and detailed analysis of the key themes and emerging topics faced by global enterprises when dealing with compensation issues today

Download or read book Corporate Governance written by H. Kent Baker and published by John Wiley & Sons. This book was released on 2010-08-20 with total page 690 pages. Available in PDF, EPUB and Kindle. Book excerpt: A detailed look at the importance of corporate governance in today's business world The importance of corporate governance became dramatically clear at the beginning of the twenty-first century as a series of corporate meltdowns from managerial fraud, misconduct, and negligence caused a massive loss of shareholder wealth. As part of the Robert W. Kolb Series in Finance, this book provides a comprehensive view of the shareholder-manager relationship and examines the current state of governance mechanisms in mitigating the principal-agent conflict. This book also offers informed suggestions and predictions about the future direction of corporate governance. Relies on recent research findings to provide guidance through the maze of theories and concepts Uses a structured approach to put corporate governance in perspective Addresses essential issues related to corporate governance including the idea of principal-agent conflict, role of the board of directors, executive compensation, corporate monitoring, proxy contests and corporate takeovers, and regulatory intervention Corporate governance is an essential part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.

Download or read book Corporate Governance and Director s Remuneration written by Husna Siraji Nyambwa and published by . This book was released on 2014 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past few years, the executive remuneration has increased rapidly and has attracted the interest of academics, public media as well as policy makers due to well-known market failure at the heart of corporate governance regime. Particularly, weak corporate governance (CG) mechanism contributes to the financial crisis and has drawn attention to the high levels of executive compensation. The problem arises how corporate governance mechanism resolves the conflict of interest between shareholders and directors as well as improving company performance. The problem is worst in the small firms because many of the small firms are owner-controlled. This study extensively investigates the effects of different aspects of corporate governance mechanism, including-board size, board shareholding, CEO duality, family member, independent directors in remuneration committee, and number of board meeting, on executive remuneration in small firms listed on Bursa Malaysia. The firm characteristics such as, performance (ROA) and opportunity growth (TOBIN Q) were controlled for. The final sample of this study consists of 173 bottom listed companies from Bursa Malaysia based on market capitalization in year 2010. The Ordinary Least Squares (OLS) regression was used to estimate the relationship between remuneration as dependent variable and other independent variables. A finding from this study reveals that, there is significant positive relationship between executive ownership and executive remuneration. Furthermore, this study reveals that, there is significant positive relationship between board size and executive remuneration. Moreover, the family member shows a significantly positive relationship with remuneration. The results provide evidence that the family members manipulate power and control remuneration in small firms. Also there is significant positive relationship between independent directors in the remuneration committee and directors remuneration. This indicate that in the small firm the independent directors are not truly independent to monitor and control the firm activities, including minimising the excessive remuneration. The results indicate corporate governance system of small firm cannot improve firm performance rather grant executive high compensation. Thus, characteristics in determining remuneration in small firm have been found to facilitate executive needs rather than to attempt to monitor them. Therefore this study contributes to the rising literature on executive directors' remuneration manipulating boardroom pay especially for bottom listed companies in Malaysia.

Download or read book Proceedings of the XIII International Symposium SymOrg 2012 Innovative Management and Business Performance written by and published by University of Belgrade, Faculty of Organizational Sciences . This book was released on 2012-06-03 with total page 2004 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book U S Corporate Governance written by Donald H. Chew and published by Columbia University Press. This book was released on 2009-08-25 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance constitutes the internal and external institutions, markets, policies, and processes designed to help companies maximize their efficiency and value. In this collection of classic and current articles from the Journal of Applied Corporate Finance, thought leaders such as Michael Jensen and Robert Monks discuss the corporate mission of value maximization and the accomplishments and limitations of the U.S. governance system in achieving that end. Essays address the elements driving corporate value: the board of directors, compensation for CEOs and other employees, incentives and organizational structure, external ownership and control, role of markets, and financial reporting. They evaluate best practice methods, challenges in designing equity plans, transferable stock options, the controversy over executive compensation, the values of decentralization, identifying and attracting the "right" investors, the evolution of shareholder activism, creating value through mergers and acquisitions, and the benefits of just saying no to Wall Street's "earnings game." Grounded in solid research and practice, U.S. Corporate Governance is a crucial companion for navigating the world of modern finance.

Download or read book Comparative Corporate Governance written by Klaus J. Hopt and published by Walter de Gruyter GmbH & Co KG. This book was released on 2015-02-06 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance has become an important issue in all industrial economies. This text has grown out of a conference entitled Comparative Corporate Governance, An International Conference, United States - Japan - Western Europe which considered the subject.

Download or read book Global Compensation written by Luis Gomez-Mejia and published by Routledge. This book was released on 2008-08-06 with total page 331 pages. Available in PDF, EPUB and Kindle. Book excerpt: Compensation is a systematic approach to providing monetary value and other benefits to employees in exchange for their work and service. But pay and conditions becomes a more complicated issue for multinational companies which operate across different locations and cultures, and who employ an increasingly diverse range of personnel. This unique new text gives in-depth analysis of the key themes and emerging topics faced by global enterprises when dealing with compensation issues. The first section, ‘Foundation Concepts’, looks at the design of compensation packages for a number of different employee groups; from supply chain management to research and development, as well as ethical considerations when dealing with a global context, and the concept of performance related pay. The second section, ‘Global Applications’, looks at current debates in the field, including the influence of national cultures on compensation schemes, discrepancies in CEO pay, and contrasts in wages between industry types. Part of Routledge’s Global HRM, this is is an invaluable text for any student of HRM, Business and Management, or any practitioner working in this area.

Download or read book Stock Options and the New Rules of Corporate Accountability written by Donald P. Delves and published by McGraw-Hill Companies. This book was released on 2004 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: "As a former CEO and independent director of several corporations, I find Don Delves' discussion of executive compensation -- including detailed and insightful reviews of the issues involving stock options -- to be exceedingly instructive. This is a book that members of compensation committees, indeed all corporate board members should read." -B. Kenneth West, Former CEO, Harris Trust and Savings Bank and member of several corporate boards. Guidelines for curbing today's stock option abuses, and making "payment for performance" the new imperative Stock options account for up to 90 percent of the average CEO's compensation--despite a falling stock market and often plunging corporate earnings. Stock Options and the New Rules of Corporate Accountability examines this hot-button issue, proposing new methodologies and techniques for better aligning stock options, executive compensation, performance rewards, and accounting, and making sense of what has become today's most controversial form of compensation. Executive compensation authority Don Delves explains how high-profile corporations like GE and Coca-Cola have opted to expense stock options and have adjusted their policies to prevent options from becoming disincentive tools, and he shows others how to follow suit. In addition, Delves gives decision makers the knowledge they need to: Increase accountability by treating stock options as expenses Balance options with other incentives Create healthier contracts between employers and employees

Download or read book Corporate Governance and Accountability written by Jill Solomon and published by John Wiley & Sons. This book was released on 2020-10-19 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Governance and Accountability presents students with a complete and current survey of the latest developments involving how a company is directed and controlled. Providing a broad research-based perspective, this comprehensive textbook examines global corporate governance systems, the role and responsibilities of the directorate, and the frameworks designed to ensure effective corporate accountability for stakeholders. A holistic approach to the subject enables students to develop a well-rounded knowledge of corporate governance theory and practice, policy documents, academic research, and current debates, issues, and trends. Now in its fifth edition, this comprehensive view of the corporate governance agenda features fully revised content that reflects new research and global developments in codes of practice and governance and accountability mechanisms. In-depth chapters contain numerous real-world case studies and compelling debate and discussion topics, exploring corporate transparency, social responsibility, boardroom diversity, shareholder activism, and many other timely issues.