Managerial Compensation Research Articles

Implementation of Compensation Management at PT Parkland World Indonesia Jepara

This research aims to examine the implementation of compensation management that has been carried out by the company in the F1 PT PWI Jepara building. This research's main objective is to explore and assess how the implementation of compensation management is done in the company. The method used in this research is a qualitative descriptive method with interview techniques. Several employees at the F1 PT PWI Jepara building were the main informants taken by the author from different departments. The research results show that the compensation provided is not in line with employee expectations; the workload given to employees is not commensurate with the compensation received; work environment that influences employee work productivity; and there are no studies to measure employee satisfaction with compensation in the F1 PT PWI Jepara building. The implication is that to restore employee enthusiasm, the company must determine strategic steps, reduce workload, provide a sense of security and comfort in the work environment, and conduct an evaluation of employee job satisfaction in the PT PWI Jepara F1 building.

Busy Independent Directors and IPO Company Earnings Management: Evidence from China

This study investigates the effect of busy independent directors on earnings management in Chinese initial public offering (IPO) companies from 2010 to 2020. Using various measures of busy independent directors, the results indicate that directors in IPO companies play a significant role in supervision and governance, thereby significantly mitigating earnings management. Busy independent directors, serving on multiple boards, may face time constraints, but, intriguingly, companies with such directors show a lower inclination for earnings manipulation. This suggests that despite potential time pressures, the independent oversight provided by these directors serves as a deterrent to financial reporting manipulation in the context of Chinese IPOs, underscoring the importance of robust corporate governance structures for transparency and reliability. Additionally, this study identifies specific conditions that amplify the constraining effect and finds that the effect of busy independent directors on earnings management in IPO companies is more significant in companies with high compensation for independent directors, independent directors serving off-site, and companies that receive higher media attention. Mechanism testing indicated that busy independent directors mitigate IPO firms’ earnings management by engaging reputable audit firms and enhancing the effectiveness of internal controls. This nuanced analysis offers valuable insights into how busy, independent directors actively contribute to alleviating the risks associated with earnings management during the IPO process. This study enhances our understanding of the governance benefits of active independent directors in multiple roles and offers novel perspectives on how stakeholders can influence and constrain earnings management in IPO companies.

Human Resource Management and Technology: A study of the Status in Nepalese Enterprises

This article is concentrated on the study of use of technology in HR management system in Nepalese organizations. At present most of the most of the corporate organizations of Nepal use different forms of related software for managing human resource in an effective way to bring effectiveness in performance outcomes. They use technology in various HR activities consisting of recruitment, selection, training, development, financial transactions, performance appraisal, job analysis, HR planning, learning, performance management, career management, compensation management, and maintaining good labour and industrial relation. The main focus of the use of modern technology along with relevant software for managing HR activities is to bring specific system in organizational activities for improving performance to use resources consisting of money, material, machine and information technology in an effective way which helps to maximize productivity, maintaining quality and minimizing cost of products and services which facilitates to improving competitive strengths of the organization in the market. In practice it is found that most of the Nepalese enterprises especially unorganized sectors are still using manual system for managing HR activities of the organization.

Seeking justice: Inequitable management compensation and employee whistleblowing

Prompted by high pay disparity within firms, many employees have raised concerns about the equity of management compensation. This study examines the relation between employees’ perceptions of inequitable management compensation and their whistleblowing behavior. We expect that when employees feel more strongly that management compensation is inequitable and unjust, they are more motivated to blow the whistle on potential management misconduct. Consistent with this expectation, we find that firms with higher CEO pay ratios are more likely to experience employee whistleblowing of alleged misconduct in the following year. This positive association is stronger when employees are more likely to perceive a high CEO pay ratio as being unjust. We also provide several tests to mitigate concerns about alternative explanations based on corporate culture or underlying fraud and to support the assumptions underlying our arguments. In addition, our results are robust to alternative measures of within-firm pay disparity. Overall, our findings identify potentially positive aspects of high pay disparity within a firm because its employees are more motivated to monitor management through whistleblowing.

Brand loyalty, managerial delegation and position choices: Bertrand versus Cournot competition

In a mature product market, brands compete aggressively with each other using a marketing mix that includes position, pricing, and managerial delegation to win loyal customers and gain a larger market share. We examine the effects of brand loyalty on the endogenous choices of managerial compensation contracts and optimal brand positions in an uncovered market model. We analytically compare 18 symmetric and asymmetric mutual delegation cases associated with three delegation schemes—no delegation, sales delegation and relative performance (RP) delegation—in the Bertrand and Cournot competition modes. In the case of symmetric mutual contracts, under Bertrand competition, a price commitment effect resulting from the delegation decision weakens the competition, inducing higher prices and profits for both brands regardless of the type of delegation scheme. Under Cournot competition, delegation decisions can be viewed as signals to promote competition, intensifying the degree of competition. To acquire more loyal customers and higher profits, mutual RP delegation is the dominant choice under Bertrand competition, whereas mutual profit maximization is the dominant choice under Cournot competition. Furthermore, the social welfare is the highest when both brands optimally choose the RP delegation under Bertrand or optimally choose no delegation under Cournot; however, consumer surpluses are the lowest in both optimal cases.

Pengaruh Pajak Tangguhan, Kompensasi Manajemen dan Sales Growth Terhadap Manajemen Pajak

This research aims to examine the influence of Deferred Tax, Management Compensation and Sales Growth on Tax Management. The independent variables used are Deferred Tax, Management Compensation and Sales Growth. The dependent variable used is Tax Management. This research is a type of quantitative research using secondary data. The population in this research is non-cyclical consumer sector companies listed on the Indonesia Stock Exchange in 2018 - 2022. The method used is purposive sampling because this research has certain sample criteria which are adjusted to the research objectives. Based on the purposive sampling method, the number of samples in this study was 110 samples. In testing the hypothesis using panel data testing with the help of the Eviews version 12 program. Based on the results of the F test, it can be seen that the variables Deferred Tax, Management Compensation and Sales Growth together have an influence on Tax Management. Based on the results of the t test, it can be seen that the Deferred Tax variable has no effect on Tax Management. Management Compensation Variables influence Tax Management. The Sales Growth variable influences Tax Management.

The Effect of Management Compensation and CEO Narcissism on Tax Management Moderated by Auditor Reputation in Manufacturing Companies for the Period 2021-2023

The Effect of Management Compensation and CEO Narcissism on Tax Management Moderated by Auditor Reputation in Manufacturing Companies for the Period 2021-2023

The Impact of Human Resource Management Practices on Organizational Performance: The Case of Libyan International Medical University

This study aimed to investigate the impact of human resource management practices on organizational performance at Libyan International Medical University. The population consisted of 400 employees. The stratified randomized sample consisted of 196 employees. To reach the purpose of this study, data were collected from 151 employees using the questionnaire adopted from Al Shaikhly (2017). The questionnaire was revised, and validated by the supervisors. Statistical techniques such as descriptive statistics, Cronbach's alpha, multiple regressions, and stepwise regression were used to test the hypotheses. The results showed that there is a significant impact of human resource management practices (planning & recruitment, training program, and performance appraisal) on the organizational performance of Libyan International Medical University at level ( ). The results also showed that the performance appraisal variable has the most impact on organizational performance. On the other hand, the results also showed that compensation management had no impact on the organizational performance of Libyan International Medical University. The study limitations were the lack of previous studies published in Libya related to this topic, also the data were not normally distributed, and just 46% of variations in the organizational performance are explained by human resource management practices in this study. The study recommended conducting more research on the topics addressed in this study to acquire a deeper and broader understanding of human resource management practices. Keywords: Human resource management practices, organizational performance, LIMU.

The value of say on pay

We measure the impact of “say on pay” (SoP) – mandatory shareholder votes on top-management compensation – on the market value of voting rights. By exploiting the staggered introduction of SoP across 14 economies, we show that SoP does not automatically increase the value of shareholder voting rights. While stricter, binding SoP reforms increase voting values, looser advisory SoP laws decrease them. Firms that do not pay their CEOs excessively experience the largest decreases in voting values. Voting values also reflect a country’s level of investor protection, past dissent in SoP ballots, and dynamically adjust to changes in managerial compensation.

The Impact Of Financial Compensation On The Performance Of Marketing Employees

To achieve this goal, companies need to pay attention to employees in all aspects of their work because this becomes an incentive for employees to carry out their work activities and achieve organizational goals. For this reason, it is natural to pay attention to the whereabouts of employees from the start. Employees who are company assets need to know their needs and desires so that they are expected to be able to produce job satisfaction, good performance and high loyalty to the company so as to achieve company goals. Effective human resource management requires managers to find the best way to employ employees to achieve goals. company. There are many things that can be done to empower good human resources, including efforts that include level education, training, and creating a conducive work situation or environment so that employees feel at home carrying out their work. Compensation is an important aspect in determining employee performance. Company attention is important because employees try to achieve the performance determined by the company. Realizing the importance of compensation for company performance, compensation management should be important. In providing compensation, the timeliness of providing compensation and the amount of compensation given by the company to employees affects employee morale, motivation, work performance and performance. An employee's absolute income level will determine the scale of his life and relative income shows his status and dignity. Therefore, if employees perceive that the compensation they receive is inadequate, this will cause employee morale, motivation, work performance and performance to decline drastically. Motivation is a condition that drives employees who are directed or focused on achieving company goals. Achieving this goal means also achieving the personal goals of the members concerned.

Effect of Succession Planning Practices on NGOS Performance in Tanzania

Purpose: The purpose of this study was to assess the effects of succession planning practices on Non-Governmental Organizations (NGOs) performance in Tanzania. The specific objectives of the study were to: examine the effects of talent management on NGO performance; determine the effects of career management on NGO performance; and evaluate the effects of compensation management on NGO performance. Design/Method/Approach: The study used quantitative approach. The targeted population was 124 employees working in two selected non-governmental organizations in Tanzania. Simple random sampling was used to provide detailed information. Data was collected using questionnaires. The data were analyzed through descriptive and inferential analysis. Findings: The findings of the study showed that the majority of respondents, with an average mean of 3.8, 3.8, and 3.7, agreed that talent management, career management, and compensation management influence organizational performance in terms of efficiency and effectiveness, respectively. The study found that, here is a positive and significant relationship between talent management (β =.152, p =.047) and NGOs performance. The results also indicated that there exists a positive and significant (r = 0.390, p > 0.000) correlation between an employee’s performance and career development. Finally, the results indicated that there exists a positive and significant (r = 0.624, p > 0.000) correlation between organization performance and compensation practices. Theoretical Implications: The study refines the succession planning practices literature. The multiple dimensions of selected human resources practices have been explored. Practical Implications: The multiple dimensions of selected human resources practices have been explored, which might help managers improve employees' performance at work. Human resource scholars would benefit from this study during training by ensuring this knowledge is intensified to produce better human resource management at work. Originality/Value: As per the existing empirical literature, it is the first study to be conducted in the Tanzanian context. Research Limitations/Future Research: This study concentrated on studying the relationship between selected succession management practices and organizational performance. Therefore, this study laid the foundation for other researchers to focus on other variables that may influence employees' performance. Nevertheless, researchers may also study the same relationship with other institutions. Also, other researchers may wish to expand their knowledge by conducting the same study through the use of different research methodologies, i.e., qualitative methods, in order to confirm whether different methods may produce similar findings or vice versa. Paper Type: Empirical JEL Classification: M12, M51, L31, O15

Does Employee Engagement Mediate in the Relationship between Compensation Management and Employee Retention?

Employee retention is critical to the success of any business or organization, including private universities in Bangladesh. The present study aimed to determine the mediating effect of employee engagement in the relationship between compensation management and employee retention among faculty members at private universities in Bangladesh. This study employed a cross-sectional survey method using a purposive sampling technique. The sample size was 160 PhD-holding permanent faculty members of selected private universities located in Dhaka and Chittagong, Bangladesh. Data was analysed by using SPSS version 22.0 and Smart-PLS software version 4.0.9.2. The finding of this study shows that there is a positive relationship between compensation management and employee retention, compensation and employee engagement, and employee engagement and employee retention. The results also show that employee engagement mediates the relationship between compensation management and employee retention. This study recommended that university HR professionals must prioritise competitive compensation packages and the creation of an engaging work environment. Finally, the study implications, limitations and suggestions for the future are discussed.

The Mediating Effect of Managerial Ability in the Relationship between Internal Control over Financial Reporting and Managerial Compensation

The Mediating Effect of Managerial Ability in the Relationship between Internal Control over Financial Reporting and Managerial Compensation

Does the environmental tax affect the within-firm pay gap? Evidence from China

The impact of the environmental tax on internal income distribution within firms is a crucial extension for evaluating the economic effects of environmental regulation policies. However, the existing literature focuses primarily on environmental effects and the Porter hypothesis, giving little attention to this topic. Using data from Chinese A-share listed companies from 2018 to 2021, we examine how the Chinese environmental protection tax affects intrafirm wage disparities. Our findings indicate that the environmental tax widens the pay gap between managerial and ordinary employees. Mechanism tests show that the environmental tax's governance effect raises managerial compensation levels, whereas cost effects decrease wages for ordinary employees. This effect is particularly pronounced in nonstate-owned firms, competitive industries, and regions with stricter environmental tax collection standards. This study makes an empirical contribution to our understanding of the effects of the environmental tax on income distribution in practice.

Remuneration satisfaction, organizational identity and employee engagement: Basis for compensation management framework

Remuneration satisfaction, organizational identity and employee engagement: Basis for compensation management framework

Uncovering Ethical Behavior: A Causal Factors Perspective of Control Systems and Compensation

This research examines the effects of internal control, compliance, management remuneration, and work ethic on auditors' ethical behavior. The study involved 46 auditors from a public accounting firm in Central Jakarta, using purposive sampling. Both quantitative and descriptive statistical methods, along with multiple linear analysis, were employed. Data was collected through a questionnaire assessing internal control, compliance, management compensation, work ethic, and auditors' ethical behavior. Findings reveal that internal control and compensation significantly influence auditors' ethical behavior. However, management compensation alone does not have a significant effect. Work ethic also has a substantial impact on ethical behavior. Collectively, internal control, compliance, management compensation, and work ethic significantly affect auditors' ethical behavior. Managerial implications include the necessity for robust internal control systems to prevent unethical conduct and designing management compensation structures that do not incentivize unethical behavior.

A power-efficient fast-transient OCL-LDO with adaptive super source follower and active capacitor compensation management

This paper presents a flipped voltage follower (FVF) based output-capacitor-less low-dropout regulator (OCL-LDO) with fast transient response, high power supply rejection (PSR), and low quiescent current for noise-sensitive circuits in internet-of-things (IoTs). An adaptive super source follower (ASSF) is proposed to effectively reduce the output impedance of the voltage buffer under heavy-loading conditions while keeping a low quiescent current under light-loading conditions. The active capacitor compensation management (ACCM) is proposed to solve the charge-sharing problem caused by the floating capacitors in the dynamic capacitor compensation circuit. The proposed OCL-LDO has been designed and fabricated in 22-nm CMOS technology. It can stabilize with load current ranging from 0 to 12 mA while consuming only 4.8-μA quiescent current. when the load current steps from 0.1 to 10 mA within 3.8 ns, the measured voltage undershoot is 55 mV and the recovery time is about 60 ns.

Effects of urban financial agglomeration on managerial mobility and corporate management compensation

Considering the geographical and economic characteristics of corporations, this article examines the impact of financial agglomeration on managerial compensation level and structure in A-share listed corporations from 2008 – 2022. Results demonstrate a direct relationship between urban financial agglomeration and managerial remuneration. Furthermore, the remuneration structure of these managers includes a significant proportion of equity incentives. This conclusion remains significant after conducting robustness tests to ensure reliability and validity. Additional research suggests that management migration is a small-scale mechanism through which urban financial agglomeration boosts managerial compensation and the proportion of equity incentives.

Audit committee cash compensation and related-party transactions: the role of directors’ affiliation

PurposeThis paper aims to investigate the relationship between the audit committee’s (AC) cash compensation and related-party transactions (RPTs). This paper also explores whether the affiliation of directors on the AC has a differential effect on the association between AC members’ cash compensation and RPTs.Design/methodology/approachThis paper uses data from Chinese-listed firms for the period from 2007 to 2017 and use the ordinary least square regressions, to test the association between AC cash compensation and RPTs. To alleviate the endogeneity concerns, this paper applies the generalized method of moment, the two-stage least square regression technique and the Granger causality test.FindingsThis paper documents a negative association between the AC members’ cash compensation and RPTs. The findings reveal that one standard deviation increase in the AC’s cash compensation leads to around 0.08% reduction in the amount of RPTs. Further analysis shows that the cash compensation of AC independent directors is negatively associated with RPTs, whereas that of nonindependent directors shows no significant impact. The results remain robust to endogeneity tests. The results might be of interest to both practitioners as well as regulatory bodies and investors.Originality/valueTo the best of the authors’ knowledge, this study is the first to try to examine the relationship between AC cash compensation and RPTs in the context of China. This study also is the first attempt to consider the affiliation of AC directors by decomposing the AC compensation into independent and nonindependent directors. Also, it adds to the literature on the determinants of RPTs.

The Application of Electronic Human Resource Management Systems (e-HRM) in HR Management

The rapid development of information technology has revolutionized human resource management (HRM) through the adoption of electronic human resource management systems (e-HRM). This paper explores the application, main functions, and impacts of e-HRM on enterprises. It highlights the significant improvements in HR management efficiency, reduction in administrative burdens, and enhancements in employee experience brought by e-HRM. Key functions such as recruitment and selection, performance management, training and development, compensation management, and employee relations are discussed in detail, demonstrating how e-HRM optimizes these processes. Additionally, the paper examines the positive effects of e-HRM on organizational change and innovation, as well as employee satisfaction and loyalty. The implementation challenges, including initial costs and adaptability issues, are also addressed. Future research directions are proposed, emphasizing the integration of emerging technologies like artificial intelligence and big data to further advance e-HRM systems. This study underscores the transformative impact of e-HRM in modern HR management and its potential for driving enterprise success.