Determinants of CEO Compensation

Khanna, Vivek

doi:10.17722/ijme.v6i2.223

Cited by 5 publications

(6 citation statements)

References 40 publications

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“…The results coincide with expectancy theory (Porter & Lawler, 1968;Garbers & Konradt, 2014;Li et al, 2013), where employee expect that their multiple job and tasks will be awarded with decent amount of reward that can provide them with contentment. The results also in line with agency theory, the job will be rewarded with sufficient financial award and the employees conduct the job with effective effort (Khanna, 2016). For that particular reasons, non-financial reward will not do do the job to increase the employee motivation to perform better in their institutions (Bonner & Sprinkle, 2002).…”

Section: Conclusion and Recommendationsupporting

confidence: 77%

“…Agency theory provides this study with an assumption that people are economically rational. It means that they apply minimum effort to accomplish a certain amount of output (Khanna, 2016). The highlight of this theory is that individual will minimise his or her effort unless his or her job or task will have positive contribution on his or her welfare (Bonner & Sprinkle, 2002).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

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Behavioural Assessment Perspective on Reward System Management and Performance: An Empirical Finding on Indonesian Lecturer

Wahyono

Prihandono

Wijayanto

2018

JDM

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The role of this research is to get a clearer picture of how remuneration system influence lecturer and employee performance moderates by motivation, specifically in the state universities. This study commenced in 3 major state universities in Central Java Indonesia in order to have Structural Equation Modelling (SEM) method was applied to examine and analyse the relationships between determinants. The results of this study show that ‘performance feedback’ has negative effect on ‘competence’; the relationship between ‘competence’ and ‘motivation’ is negative;‘remuneration’ positively affects ‘motivation’; the greater the level of remuneration, the greater the level of working performance intention in the institutions’;and there is positive and significant relationship between ‘motivation’ and ‘performance intention’. The study provides the importance of how the remuneration system can be applicated as one focal scheme to enhance instituions performance in general, especially applied to college.

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Section: Conclusion and Recommendationsupporting

confidence: 77%

Section: Hypothesis Developmentmentioning

confidence: 99%

Behavioural Assessment Perspective on Reward System Management and Performance: An Empirical Finding on Indonesian Lecturer

Wahyono

Prihandono

Wijayanto

2018

JDM

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“…The existence of a large percentage of external shareholders will lead to tighter monitoring of the CEO'S actions and in turn result in the reduction of the CEO'S control over their compensation [31]. In agreement to this examination, it has been found a negative link exists for shareholders who own a large fraction of the organization and CEO reward equity [38]. Enhancing the ownership percentage of the external shareholder may reduce the level of other components of compensation.…”

Section: Literature Reviewmentioning

confidence: 95%

Influence of CEOs Power on Their Compensation

Omamo¹,

K’Obonyo²,

Muind³

2020

EBM

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There is growing concern that over recent decades CEOs tend to earn overwhelmingly more than the average worker. This throws the researchers to question the economic benefit of paying CEOs huge amount of money while we have discouraged workers who may become less productive and therefore lowering the firm profitability. Researchers have taken positions on both sides of the debate over whether the level of CEO's pay is economically justified or is the result of managerial power. This study sought to establish the extent of power that CEO's possess among Kenya firms listed at the Nairobi Securities Exchange. CEO's power was measured in terms of structural power, ownership power, CEO tenure and Board composition. The study used secondary data. Data was collected from 60 firms listed at the NSE. Using a cross sectional design, a regression model was fitted to show the relationship between CEO's power and CEO's compensation. Descriptive and inferential results were obtained. The findings revealed that in the Kenyan context CEO's power does not significantly influence CEO's compensation. CEO's pay is market-determined and reflects the bidding by firms for scarce executive talent. The increase in CEO's pay is due to the rise in incentive compensation that links pay to firm performance and aligns the incentives of managers with those of shareholders.

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“…This analysis has a very important meaning as a comprehensive method. The study noted that the projected profitability variable with ROA positively affects executive compensation, [6], [15], [16]Return on Assets is usually used to measure the ability of bank management to obtain profit before tax generated from the average total assets of the bank concerned. The greater the ROA obtained, the greater the level of profit achieved by the bank.…”

Section: B Return On Asset (Roa)mentioning

confidence: 99%

Determinant of Executive Compensation (Evidence from Indonesian Banking)

Usmawati¹,

Septiyanti²,

Syaipudin³

2023

JEFMS

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The Covid-19 pandemic, in addition to having an impact on Indonesia's economic growth which is a minus, also has a negative impact on almost all industrial sectors in Indonesia. One of the industrial sectors under pressure is the banking sector. The decline in the performance of the banking company will affect the company's profitability. There are many things that will be done by the principal to make efficiencies related to all kinds of expenses, one of the components that can be reviewed is the amount of executive compensation. This study aims to analyze the effect of ROA, credit growth, growth of third-party funds, NPLs, and Covid-19 on the amount of executive compensation for banking companies listed on the Indonesia Stock Exchange in 2018 to 2021. This research is a quantitative study that uses the puposive sampling method. The results of the study found that ROA, credit growth, and company size were able to influence the amount of executive compensation for banking companies in Indonesia. Meanwhile, the growth of deposits, NPLs, and the Covid-19 pandemic did not affect the amount of executive compensation for banking companies in Indonesia.

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Determinants of CEO Compensation

Cited by 5 publications

References 40 publications

Behavioural Assessment Perspective on Reward System Management and Performance: An Empirical Finding on Indonesian Lecturer

Behavioural Assessment Perspective on Reward System Management and Performance: An Empirical Finding on Indonesian Lecturer

Influence of CEOs Power on Their Compensation

Determinant of Executive Compensation (Evidence from Indonesian Banking)

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