A Global Outlook on Executive Compensation: A Comparative Exploration
Author(s)
Download Full PDF Pages: 33-38 | Views: 341 | Downloads: 113 | DOI: 10.5281/zenodo.3459069
Abstract
The global arena has become the battleground for organizations to find executives with human capital that can thrust high performance goals. Using an exploration of the extant literature, this paper focused on executive compensation from three different regional perspectives: The United States, European Union member-states, and Chinese. The author Sought to inquire about the payfor-performance incentives and to evaluate both similar and dissimilar compensation structures across the globe by using three exemplars. In the same light, discussed are the various elements included in compensation. Provided is a review of global compensation structure, along with pay-for-performance as a main enticement for global executives. Frankly, this comparative paper identified that not all compensation plans were tied to pay-for-performance, while some were overtly tied to pay for performance due to the structure of the organizational risk-aversion and economic structure.
Keywords
Compensation, pay-for-performance, global compensation, human resourc
References
- Abowd, J. M., & Bognanno, M. (1995). International differences in executive and managerial compensation. In Differences and changes in wage structures (pp. 67-104). University of Chicago Press.
- Aluchna, M. (2013). Corporate governance in founders‟ controlled companies. Intelektinė Ekonomika, (7 (2), 195-205.
- Bloom, M., & Milkovich, G. T. (1998). A SHRM perspective on international compensation and reward systems.
- Cooper, M. J., Gulen, H., & Rau, P. R. (2014). Performance for pay? The relation between CEO incentive compensation and future stock price performance.
- Dessler, G. (2009). Fundamentals of human resource management. Pearson Higher Ed.
- Festing, M., & Sahakiants, I. (2011). Determinants of share-based compensation plans in Central and Eastern European public companies: An institutional analysis. Journal for East European Management Studies, 338-357.
- Geletkanycz, M. A., Boyd, B. K., & Finkelstein, S. (2001). The strategic value of CEO external directorate networks: Implications for CEO compensation. Strategic Management Journal, 22(9), 889-898.
- Gerhart, B., & Fang, M. (2014). Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects. Human Resource Management Review, 24(1), 41-52.
- Hölmstrom, B. (1979). Moral hazard and observability. The Bell journal of economics, 74-91.
- Ivancevich, J. M. (2010). Human resource management.11th (Ed). New York, NY: McGraw-Hill
- Kato, T., & Long, C. (2006). Executive compensation, firm performance, and corporate governance in China: Evidence from firms listed in the Shanghai and Shenzhen Stock Exchanges. Economic Development and Cultural Change, 54(4), 945-983.
- Murphy, K. J. (1999). Executive compensation. Handbook of labor economics, 3, 2485-2563.
- Peng, M. W., Sun, S. L., & Markóczy, L. (2015). Human capital and CEO compensation during institutional transitions. Journal of Management Studies, 52(1), 117-147.
- Pandher, G. and Currie, R. (2013). „CEO compensation: a resource advantage and stakeholder-bargaining perspective‟. Strategic Management Journal, 34, 22–41
- Phillips, L., & Fox, M. A. (2003). Compensation strategy in transnational corporations. Management Decision, 41(5), 465-476.
- Rynes, S. L., Gerhart, B., & Parks, L. (2005). Personnel psychology: Performance evaluation and pay for performance. Annu. Rev. Psychol., 56, 571-600.
- Solomon, C. M. (1995). Global compensation: Learn the ABCs. Personnel Journal, 74(7), 70.
- Wang, K., & Xiao, X. (2011). Controlling shareholders‟ tunneling and executive compensation: Evidence from China. Journal of Accounting and Public Policy, 30(1), 89-100.
- Watson, B. W., & Singh, G. (2005). Global pay systems: compensation in support of a multinational strategy. Compensation & Benefits Review, 37(1), 33-36.