Firm performance versus managerial power in determining CEO compensation : a critical study
Other Title(s)
أداء الشركة مقابل السلطة الإدارية في تحديد تعويضات المدير التنفيذي : دراسة انتقادية
Author
Source
Issue
Vol. 2017, Issue 7، ج. 2 (31 Dec. 2017), pp.565-578, 14 p.
Publisher
Publication Date
2017-12-31
Country of Publication
Algeria
No. of Pages
14
Main Subjects
Abstract EN
To answer the question if chief executive officers (CEOs) are compensated according to their performance or to their power in the company, the current study attempts to provide a rich literature review concerningAgency Theory (AT)and Management Power Theory (MPT) in explaining top management compensation.
In practice, some empirical studies tie senior compensation tomanagement power in order to test MPT and find that management power is an important determinant of senior compensation; whileotherstudies tie senior compensation to firm performance in order to test ATand find that top management compensation is affected essentially by firm performance.However, many studies’ results show no support for the theories, which is used by researchers as a basis for criticism.
Studies’ results vary from supporting to not supporting either AT or MPT perhaps because results are conducted in different circumstances and use different proxies for variables.
This is why the debate ofhow senior management compensation is decided is still ongoing.
American Psychological Association (APA)
Sulaymani, Samihah. 2017. Firm performance versus managerial power in determining CEO compensation : a critical study. Revue Abaad Iktissadia،Vol. 2017, no. 7، ج. 2, pp.565-578.
https://search.emarefa.net/detail/BIM-871196
Modern Language Association (MLA)
Sulaymani, Samihah. Firm performance versus managerial power in determining CEO compensation : a critical study. Revue Abaad Iktissadia No. 7, p. 2 (Dec. 2017), pp.565-578.
https://search.emarefa.net/detail/BIM-871196
American Medical Association (AMA)
Sulaymani, Samihah. Firm performance versus managerial power in determining CEO compensation : a critical study. Revue Abaad Iktissadia. 2017. Vol. 2017, no. 7، ج. 2, pp.565-578.
https://search.emarefa.net/detail/BIM-871196
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 577-578
Record ID
BIM-871196