Executive remuneration and the limits of disclosure as an instrument of corporate governance

Harvey, Charles; Maclean, Mairi; Price, Michael R.

doi:10.1016/j.cpa.2019.06.003

Cited by 31 publications

(16 citation statements)

References 82 publications

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“…This statement illustrates the perception of institutional "labyrinths" women would have to navigate and was consistent with other studies which, for instance, documents evidence suggesting the domination of top-level male executives in several communities; most of which had similar educational, occupational experience and knew/met each other before the formation of their community (e.g. Harvey, Maclean and Price, 2020). Men in our sample were, therefore, usually aware of the importance and made active use of networking as a "soft" skill.…”

Section: Fintech Start-ups Gender and Entrepreneurship In Latin Americasupporting

confidence: 89%

Start-ups, Gender Disparities, and the Fintech Revolution in Latin America

Bátiz‐Lazo

González-Correa

2021

SSRN Journal

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This chapter considers the process of entrepreneurial activity to deploy financial technologies (fintech) through mandate-specific new companies in Latin America. We deal with important historical issues such as defining the term, establishing temporal and industrial activity boundaries, positioning this particular process within other organizational forms typical of the region, the role of women and other relevant issues such as the modernization of retail payments and personal lending. A central question is whether fintech start-ups have had a 'scissor' effect in the entrepreneurial process of Latin America: at the base of the pyramid (that is, reducing frictions to support overall entrepreneurial activity, increasing financial inclusion, etc.) and near the top (by creating new business leaders). As a result, this chapter provides an initial assessment of gender disparities and barriers enabling women entrepreneurs in the fintech ecosystem.

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Section: Fintech Start-ups Gender and Entrepreneurship In Latin Americasupporting

confidence: 89%

Start-ups, Gender Disparities, and the Fintech Revolution in Latin America

Bátiz‐Lazo

González-Correa

2021

SSRN Journal

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“…For the last two decades executive remuneration and corporate performance have been debatable topics. Extensive strands of research highlight the prime question whether executive remuneration can be justifiable from the lens of top management contributions to corporate financial profitability (Firth et al, 2006;Harvey et al, 2020;Jensen & Murphy, 1990;Kato & Long, 2006). Significant research studies have contributed to the literature regarding executive remuneration (Ataay, 2018;Harymawan et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Executive remuneration, corporate governance and corporate performance: Evidence from China

Rehman

Ali

Hussain

et al. 2021

Economic Research-Ekonomska Istraživanja

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This study investigates the impact of corporate performance and corporate governance on executive remuneration in a Chinese market setting. Using Generalized Method of Moments (GMM) estimation approach for a sample of 860 non-financial firms listed on Chinese Stock Exchanges over the 15 years period of 2004-2018, the study found a positive and significant association between corporate profitability and executive pay. The study further reports that ownership concentration is positively related to executive pay revealing an entrenchment effect i.e., collusion between large shareholders and top management. Consistent with managerial power and agency theory CEO duality exhibits a positive relationship with executive remuneration, while board size and board independence also reveal a positive association with executive pay, indicating board ineffectiveness in reducing managerial entrenchment. Interestingly, non-state-owned enterprises report a negative relationship of board size with executive remuneration which means non-state-owned enterprises with larger board size tend to reduce executive pay because they may have better control and monitoring. Following the managerial power propositions, CEO duality weakens the performance sensitivity of executive pay, but contrary to agency theory the impact of board independence on this sensitivity is in contrast and weakens the relationship of managerial pay and performance, making the independent director's role ambiguous.

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“…Complexity can be reined in if committees establish member literacy. More fundamental doubt was expressed by a participant, highlighting that, not only are shareholders overwhelmed with the compensation complexities and underlying compulsory disclosures (Harvey et al, 2020), but members themselves are not really able to cope with the array of complexities:…”

Section: Casting Doubt On Members' Expertisementioning

confidence: 99%

Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom

Gendron

Malsch

Tremblay

2021

Innovar

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This paper investigates the dynamics of complexity and expertise in the context of compensation committees (ccs). Drawing on semi-structured interviews, mostly with cc members and consultants, we bring to light two axes of subordination that impact the mindset of corporate governance participants, and may ultimately undermine directors’ degree of accountability to shareholders. The first axis involves cc members’ subordination to consultant expertise, which tends to be considered as an indispensable ally in dealing appropriately with the webs of complexity that allegedly characterize executive compensation. Nourished partially by the first axis, the second implies subservience to these webs of complexity, which are widely presumed and naturalized by cc members and the consulting experts they employ. One of our main contributory statements is to question the ascendancy of complexity in the boardroom, casting doubt on one of the key assumptions upon which practices and expertise in contemporary corporate governance institutions are built and promoted. We also question the extent of epistemic dependency in many compensation committees, where much of the knowledge necessary to properly operate the repertoire of practices (deemed necessary to address the problem of executive compensation determination) is not primarily in the hands of cc members, but rather in those of consultants.

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Executive remuneration and the limits of disclosure as an instrument of corporate governance

Abstract: This is a repository copy of Executive remuneration and the limits of disclosure as an instrument of corporate governance.

Cited by 31 publications

References 82 publications

Start-ups, Gender Disparities, and the Fintech Revolution in Latin America

Start-ups, Gender Disparities, and the Fintech Revolution in Latin America

Executive remuneration, corporate governance and corporate performance: Evidence from China

Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom

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