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Executive performance-based remuneration, performance change and board structures

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  • Lee, Janet
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    Abstract

    This paper examines CEO performance-based remuneration in companies that experience improvement in financial performance but have different board structures. It analyzes how such payment relates to change in financial performance and board structures by comparing the cases between Australian and Singaporean companies. The results highlight that performance pay in both countries is likely to be linked to change in performance. However, the proportion of CEO performance-based payment in both countries does not seem to be related to board structure. Larger firms in both countries appear to make great use of performance-based remuneration. Sales revenue is likely to be used by companies in both countries as a yardstick for determining CEO performance pay.

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    File URL: http://www.sciencedirect.com/science/article/B6W4P-4W3874D-1/2/a538071efdb045812f261dc63dc7051b
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    Bibliographic Info

    Article provided by Elsevier in its journal The International Journal of Accounting.

    Volume (Year): 44 (2009)
    Issue (Month): 2 (June)
    Pages: 138-162

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    Handle: RePEc:eee:accoun:v:44:y:2009:i:2:p:138-162

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    Web page: http://www.elsevier.com/locate/inca/620179

    Related research

    Keywords: Performance-based remuneration Independent board Performance change;

    References

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    Cited by:
    1. Bliss, Mark A. & Gul, Ferdinand A., 2012. "Political connection and cost of debt: Some Malaysian evidence," Journal of Banking & Finance, Elsevier, vol. 36(5), pages 1520-1527.

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