KOMPENSASI SEBAGAI ALAT PENINGKATAN KINERJA DALAM BINGKAI AGENCY THEORY

Abstract

<span><em>Agency theory looked at the relationship between the owner (the principal) and </em><span><em>management (agent). Compensation given to overcome problems in the theory of </em><span><em>agency, ie the difference between the interests of owners and agents. Compensation </em><span><em>system is designed organization aims to motivate employees to improve their </em><span><em>performance and retain competent employees. In order to work incentive</em><br /><span><em>compensation, corporate boards must choose a level measurement and precise </em><span><em>performance. Performance-based Reward twofold benefit: informing and </em><span><em>motivating.</em><br /><span><em>The purpose of this paper is to review how compensation as a performance </em><span><em>enhancement tool. The research method uses literature study and its conclusions </em><span><em>are: 1. The compensation was given to address the problems in the theory of </em><span><em>agency (the difference between the interests of owners and agents). 2. The </em><span><em>compensation system is designed organization aims to motivate employees to</em><br /><span><em>improve their performance and retain competent employees. 3. To work incentive </em><span><em>compensation, corporate boards must choose a level measurement and precise</em><br /><span><em>performance. The measurement system there are two traditional compensation (use </em><span><em>of accounting profit that measure the past) and the stock price (measuring the</em><br /><span><em>future).</em></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><br /><br class="Apple-interchange-newline" /></span>