Cost-efficient Performance-Vesting Equity

Skovoroda, Rodion; Bruce, Alistair; Buck, Trevor; Gregory‐Smith, Ian

doi:10.1016/j.econlet.2019.06.002

Cited by 1 publication

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“…They explained that a binding vote is likely to have more onerous consequences than a non-binding one. Skovoroda et al. (2018) warned that the potential “threat” of binding say on pay could weaken over time if shareholders do not actually exercise their voting power.…”

Section: Findings and Discussionmentioning

confidence: 99%

Insider perspectives on director remuneration governance deliberations

Zyl

Mans-Kemp

2022

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PurposeCompanies around the globe increasingly receive immense shareholder scrutiny due to perceivably excessive executive director remuneration. The debate in South Africa intensifies due to severe pay inequality. The authors thus accounted for the perspectives of asset managers and listed financial services companies in South Africa pertaining to the impact of voting and engagement on director pay policies and practices.Design/methodology/approachSemi-structured interviews were conducted with selected asset managers, chief executive officers, chief financial officers and remuneration committee members of listed financial services companies to gauge their views on the impact of shareholder activism endeavours on remuneration governance. The qualitative data was analysed by conducting thematic analysis.FindingsMost of the asset managers and financial services representatives preferred proactive, private engagement on pay concerns, given the impact thereof on voting outcomes, and ultimately director remuneration practices and policies. Independent remuneration committees have a prominent role in facilitating engagements with investors to ensure fair remuneration.Research limitations/implicationsThe consequences should be clearer if organisations receive substantial votes against their pay policies and implementation reports. South African regulators can consider the “two-strikes” rule to ensure that action is taken in response to shareholder voting on director remuneration matters.Originality/valueRepresentatives of asset managers and listed financial services investee companies offered valuable insights on remuneration governance deliberations in an emerging market. This in-depth analysis highlights the importance of proactive engagement to ensure that corporate leaders are paid fairly.

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Section: Findings and Discussionmentioning

confidence: 99%

Insider perspectives on director remuneration governance deliberations

Zyl

Mans-Kemp

2022

View full text Add to dashboard Cite

show abstract

Cost-efficient Performance-Vesting Equity

Cited by 1 publication

References 9 publications

Insider perspectives on director remuneration governance deliberations

Insider perspectives on director remuneration governance deliberations

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