CEO compensation and performance in US private foundations

Allen, Arthur C.; McAllister, Brian P.

doi:10.1111/faam.12150

Cited by 8 publications

(11 citation statements)

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“…In terms of agency theory, the findings imply an important conclusion related to alignment. Jensen and Meckling (1976) and later confirmed by Allen and McAllister (2018) address compensation as a tool for alignment reducing agency cost. Our research shows that it is not necessary true, instead, shareholders (principal) may elect board member with high networking and high experience to have better efficiency for lower agency cost.…”

Section: Discussionmentioning

confidence: 94%

Board Capital and Bank Efficiency: Insight From Vietnam

Kontesa

Nichol

Bong

2020

Business: Theory and Practice

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This study investigates the role of board capital on bank’s efficiency for a sample of 45 banks in Vietnam over 2011–2015. Using robust panel regression, we find board capital is important in making Vietnamese bank efficient even after controlling its endogeneity issue. This study further documents that networking capital and experience capital are the important factors, but not education for bank efficiency. The findings of this research contribute to the entrenchment hypothesis in agency theory, where networking and experience can be the bargaining power for manager (agent) in securing their compensation. It also contributes to human capital theory and resource base view theory where it shows networking and experience are stratetic human capital resources for bank efficiency. The findings imply that shareholders should consider the networking and experience of board members during board elections. Future research may engage with the intervention of corporate governance monitoring or test it in other developing countries context.

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Section: Discussionmentioning

confidence: 94%

Board Capital and Bank Efficiency: Insight From Vietnam

Kontesa

Nichol

Bong

2020

Business: Theory and Practice

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“…Similar circumstances, mainly in U.S. settings, have already led to studies examining the determinants of non‐profit CEO compensation, thereby highlighting the relevance of key factors such as CEO profiles (e.g. experience and age), quality of governance, organisational performance and characteristics (Allen & McAllister, 2018; Newton, 2015). However, outside of the U.S. context, research findings are limited.…”

Section: Introductionmentioning

confidence: 89%

“…from £60,000 upwards). Because not all charities specifically disclose the CEO's compensation, the compensation of the highest‐paid staff was assumed to be that of the CEO (Aggarwal et al., 2012; Allen & McAllister, 2018; Jobome, 2006). Data relating to CEO characteristics and trustee board profiles were hand collected from the Charity Commission website, charity websites and board meeting minutes, whereas accounting data were provided by the Charity Commission.…”

Section: Methodsmentioning

confidence: 99%

“…The dependent variable (CEO compensation) is measured by the natural logarithm of total compensation, which comprises total salary and benefits in kind (e.g. bonuses) (Allen & McAllister, 2018, Brickley et al., 2010, Newton, 2015).…”

Section: Methodsmentioning

confidence: 99%

“…board size, the existence of sub‐committees and board independence). Relatedly, Allen and McAllister (2018) concluded that conflicting pay–performance evidence in the non‐profit context (e.g., U.S. foundations) may be ‘indicative of unobservable board governance mechanisms that impact both CEO compensation and performance’ (p. 128). Our findings thus bring new insights on the granular effects of these ‘unobservable’ mechanisms (e.g.…”

Section: Introductionmentioning

confidence: 99%

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To what extent do governance, government funding and chief executive officer characteristics influence executive compensation in U.K. charities? Insights from the social theory of agency

Nguyen

Soobaroyen

2020

Financ Acc Manag

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This paper draws on agency theory, as extended by the social theory of agency (STA) (Wiseman, Cuevas‐Rodríguez & Gomez‐Mejia, 2012), to examine the association between governance arrangements, reliance on government funding, chief executive officer (CEO) non‐profit experience, and CEO compensation in the UK charity sector. We rely on a hand‐collected data for the largest 240 charities and find that greater trustee board diversity (specifically gender and education diversity) and the existence of a remuneration or nomination committee are positively associated to CEO compensation. The results also show that a reliance on government funding and CEO's non‐profit work experience, together with the presence of a finance/accounting expert on the audit committee are negatively associated to CEO compensation. The existence of an audit committee, internal audit function, use of specialist external auditor and CEO characteristics (gender, ethnicity and managerial experience) are not significant factors. Our findings are largely consistent with the STA's propositions. Specifically, executive compensation levels reflect the CEO's ability to work with a diverse board while a higher reliance on government funding signals the role of the State's pressures in moderating CEO compensation. Finally, in a context characterised by altruism and public benefit, financial rewards are not seen as the dominant ‘value metric’, resulting in lower compensation for CEOs previously working in the sector. Our findings have policy implications, specifically in relation to the role, composition and effectiveness of governance structures (e.g., trustee boards, audit and remuneration committees) in overseeing the design of executive compensation schemes within the charity sector.

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Director compensation and foundation performance

Yetman

2022

Journal of Accounting and Public Policy

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CEO compensation and performance in US private foundations

Cited by 8 publications

References 50 publications

Board Capital and Bank Efficiency: Insight From Vietnam

Board Capital and Bank Efficiency: Insight From Vietnam

To what extent do governance, government funding and chief executive officer characteristics influence executive compensation in U.K. charities? Insights from the social theory of agency

Director compensation and foundation performance

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