The year-on-year analysis of the relationship between chief executive officer remuneration and state-owned company performance in South Africa

Bezuidenhout, Magda L.; Bussin, Mark

doi:10.4102/sajhrm.v18i0.1411

Cited by 3 publications

(3 citation statements)

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“…Many researchers have analyzed the impact of managerial pay on business performance and found that there are conflicting results. They are based on the fact that there is (Bussin and Modau, 2015;Bezuidenhout, 2016;Uyanik, 2017) or there is not (Gigliotti, 2013;Luo, 2015;Rahman 2017) a significant relationship between company performance. What is significant about this period is that there was a decrease in individual performance and layoffs were necessary (Groysberg et al, 2021).…”

Section: Responsible Rewarding Of Top Managers In the Field Of Touris...mentioning

confidence: 99%

The Impact of the Covid-19 Pandemic on the Compensation of Top Managers of the CSR Organizations in the Field of Tourism and Hospitality in EU

Ilić,

Lepojević,

Ivanović-Đukić

et al. 2023

Economic Themes

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This paper investigates the impact of the Covid-19 pandemic on the compensation of top managers and business performances of large socially responsible companies CSRin EU in tourism and hospitality industry. By applying the methods of correlation and regression analysis on a sample of 241 large organizations in the field of tourism and hospitality, we examined whether the Covid-19 pandemic caused a decrease in the total compensation of top managers and some of their parts (basic salary and variable part of compensation) and a change in their structure in a socially responsible company in the field of tourism and hospitality in the EU and how these changes in return affected the performance of the mentioned organizations measured by return on investment ROE. The results showed that there was a significant decrease in the total compensation of top managers in the observed companies during 2020 and 2021compared to 2019, as well as that there was an increase in the share of the basic salary (to the detriment of the variable part) in the total earning of top managers in the same period. The results also showed that changes in the compensation of top managers due to the pandemic had a significant impact on the performance of large socially responsible companies in the tourism and hospitality industry in EU that they lead.

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Section: Responsible Rewarding Of Top Managers In the Field Of Touris...mentioning

confidence: 99%

The Impact of the Covid-19 Pandemic on the Compensation of Top Managers of the CSR Organizations in the Field of Tourism and Hospitality in EU

Ilić,

Lepojević,

Ivanović-Đukić

et al. 2023

Economic Themes

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“…Chief Executive Officer (CEO) compensation is commonly known a combination of financial and non-financial benefits that consists of fixed salary and short-and long-term incentives (Bezuidenhout, 2016). Number of studies have focused on the relationship between CEO compensation and capital structure; however, insufficient attention has been paid to those association with non-financial firms in the European economy.…”

Section: Ceo Compensationmentioning

confidence: 99%

Corporate Governance and Capital Structure: Evidence from Europe

Ahmed¹,

Ali²,

Hágen³

2023

J. Professional Business Review

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Purpose: The objective of this paper is to investigate the association between corporate governance and capital structure. Theoretical framework: Since 1970, when the concept of corporate governance is introduced, the debate on whether it might affect capital structure have been ongoing. It is largely believed that in the real world, when effective cooperate governance adopted, strong capital structure can be achieved. Nonetheless, the experimental evidence reveals a variety of findings on such association. Design/Methodology/Approach: Panel data was collected form annual reports of 42 non-financial listed firms on Frankfort and Oslo stock exchange over the period 2017-2021. Ordinary Least Square (OLS) regression model is utilized to estimate the connection between dependent and independent variables. Findings: The finding shows that BS and AUCS are positively related with the capital structure and the result is significant. With respect to corporate governance, BM and BR with DTA have a negative and significant relationship. CEOC has positive but insignificant connection with DTA. Similarly, insignificant relationship between CEOT and DTA was observed. FS as a control variable has positive association with DTA, whereas the CR related DTA inversely. Despite the fact that, European firms mainly followed with a good corporate governance style if compared with developing countries, the results are still recommended further improvement for the firms in both countries in order to improve the financial position Research, practical & social implications: Future studies should focus on other corporate governance indicators that might affect capital structure significantly. It is also recommended for them to focus on financial firms and make a comparison between financial and non-financial firms. Originality/Value: By providing significant data for the impact of corporate governance on capital structure, this research contributes with existing literature on governance mechanism and management of capital structure. The findings will guide policymakers in various countries in determining the effectiveness of availability corporate governance reforms to enhance the structure of capital.

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“…Other previous studies (Bezuidenhout & Bussin, 2020;Marimuthu & Kwenda, 2019) on the CEO of an SOE were not focussing on the challenges the CEOs face when executing a turnaround strategy in the SOE but rather on the impact the CEOs' remuneration has on performance. Fourie (2014) analysed the role of four SOEs in South Africa and discussed their financial contribution and performance.…”

Section: Introductionmentioning

confidence: 99%

Challenges faced by CEOs in executing turnaround strategies in state-owned enterprises in South Africa

Mpete,

Maier

2024

South African Journal of Business Management

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Purpose: Building on theories of the firm, this research examines the challenges faced by chief executive officers (CEOs) in executing a turnaround strategy in the state-owned enterprises (SOEs) in South Africa.Design/methodology/approach: This is a qualitative study conducted within 10 of the 21 SOEs classified as Schedule 2 (major public institutions) in the Public Finance Management Act (PFMA) that previously embarked on a turnaround. The study comprised 24 semi-structured interviews with CEOs, chief financial officers (CFOs), chief operating officers (COOs), boards, union representatives, regulators, and shareholders as the key players in a turnaround of a SOE. Thematic analysis was used to analyse data.Findings/results: This research suggests that political landscape and power struggles, inappropriate practices of board, politicians and shareholders, inefficient internal operations, leadership instability, legislation and corporate governance hinder the execution of turnaround strategies in the SOEs. This research is consistent with public choice, agency and resource dependence theories.Practical implications: State-owned enterprises need to be free from political interference to be able to turn around. Government, board, shareholders, communities, regulators, service providers and unions need to relook at how they portray the CEOs of SOEs, and rethink how they deal with them.Originality/value: This research contributes to policy, theory, practice, economy and society by expanding the theories of the firm, capturing real-life challenges the CEOs of SOEs face in executing a turnaround strategy and solutions to tackle the challenges. A roadmap to assist SOEs in executing a turnaround strategy successfully is recommended.

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The year-on-year analysis of the relationship between chief executive officer remuneration and state-owned company performance in South Africa

Cited by 3 publications

References 28 publications

The Impact of the Covid-19 Pandemic on the Compensation of Top Managers of the CSR Organizations in the Field of Tourism and Hospitality in EU

The Impact of the Covid-19 Pandemic on the Compensation of Top Managers of the CSR Organizations in the Field of Tourism and Hospitality in EU

Corporate Governance and Capital Structure: Evidence from Europe

Challenges faced by CEOs in executing turnaround strategies in state-owned enterprises in South Africa

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