Managerial Compensation Research Articles

Artificial intelligence, algorithms, and compensation strategy: Challenges and opportunities

Compensation strategy plays a crucial role in attracting, motivating, and retaining strategic human capital. Amping up the advantages of being strategic about compensation are advances in technology such as cloud computing and storage along with digitized big data that make the sheer amount of information available and analyzed electronically, a huge competitive opportunity. The good news is these advances have unleashed a tsunami of technology solutions that promise to solve all compensation challenges. In this paper, I synthesize and summarize the literature on artificial intelligence and compensation management and describe four key challenges that companies face in using AI to manage compensation strategically. The first challenge is when and how to use AI to automate and augment compensation tasks and decisions. The second challenge is how to use AI effectively to improve fairness and equity in compensation practices. The third challenge is explaining how AI recommended changes in compensation practices are derived. The fourth challenge is how to actually be strategic using AI solutions. In describing these four challenges, I identify issues, opportunities, gaps, and current limitations of existing AI applications in supporting the strategic management of compensation in organizations.

The Effect of Ownership Structure and Board Characteristics on Excessive Compensation of Top-Level Management

The Effect of Ownership Structure and Board Characteristics on Excessive Compensation of Top-Level Management

Who should set Managerial Compensation?

Who should set Managerial Compensation?

Is Fixed Salary 'Fixed'? Fixed Salaries in Managerial Compensation Depend on the Firm Performance in Japan

Is Fixed Salary 'Fixed'? Fixed Salaries in Managerial Compensation Depend on the Firm Performance in Japan

Employee director compensation as a revealer of the ambiguities of their role

The analysis of the compensation that employee directors may receive for their directorship reveals the underlying stakes at the core of their mandate. On one hand, it raises questions about the relationships employee directors maintain with employees and other employee representatives. On the other hand, it raises questions about their relationships with other directors, by whom they wish to be recognised as legitimate interlocutors. Ultimately, employee directors are torn between two conceptions of their role, a tension illustrated by the diverse meanings they ascribe to their compensation.

Analysis of Executive Compensation Management Strategies of Multinational Enterprises in the Context of RMB Internationalization

Abstract This paper applies the EVA-based bonus incentive model and the EVA-based stock option incentive model to the executive compensation incentive system of multinational enterprise D and calculates the EVA amount by combining the profitability of multinational enterprise D and compares it with the net profit amount of the enterprise to obtain the difference between the two. In order to further investigate the relationship between the EVA amount and the net profit of multinational enterprises, the correlation hypothesis between executive compensation and the management of accrued surplus and the management of actual surplus is carried out, respectively. The countermeasures for the management of executive compensation in multinational enterprises under the background of the internationalization of the RMB are proposed according to the establishment of the research hypothesis. Executive compensation and accrued surplus management are negatively correlated, as shown by regression analysis, and an increase in the former will have a significant inhibitory impact on accrued surplus management behavior. There is a positive correlation between executive compensation and natural surplus management, and the significance level is 5%. This means that the increase in executive compensation has a promotion effect on natural surplus management.

ИССЛЕДОВАНИЕ МЕР ПО УПРАВЛЕНИЮ ЗАРАБОТНОЙ ПЛАТОЙ РАБОТНИКОВ МАЛЫХ ПРЕДПРИЯТИЙ

The use of compensation management contributes to improving the level of internal management of small and medium-sized enterprises, which is of great importance for the development of small and medium-sized enterprises. However, there are still many problems in the application of the wage management system in small and medium-sized enterprises. The emergence of these problems is mainly due to poor awareness in the field of wage management, an unscientific system, an imperfect evaluation and limitation mechanism, as well as the low comprehensive quality of payroll management personnel. Due to the analysis of existing problems of small enterprises, this article combines the expe-rience of wage management and related theory, based on the actual situation of small enterprises, some targeted proposals and measures are put forward.

Relationship Between Board Characteristics and Level of Corporate Disclosure Among Listed Companies in Tanzania

This paper examined the relationship between board characteristics and Level of corporate Disclosure (LCD) among Tanzanian listed companies. Relationships between board size, board independence; directors’ remuneration and LCD were examined. The 105 firm-year observations for 21 listed companies in Tanzania from 2016 to 2020 were used. The study used the agency theory. An explanatory research design was employed. Balanced panel data for analysis were gathered using a survey method. Data were analyzed using descriptive and inferential statistics. Regression analysis was used in testing hypotheses. Findings showed that board size, board independence, directors’ remuneration were positively related to LCD. It was recommended that listed companies should appoint a higher proportion of independent directors to their boards. Independent directors can provide impartial oversight and are more likely to prioritize transparency and disclosure. Companies are adviced to optimize board size aim for a board size that is appropriate for their specific needs and industry. Moreover, listed companies should adopt transparent and fair director remuneration practices. This includes disclosing the structure of director compensation, including; salaries, bonuses, stock options, and other benefits. Policymakers and regulators should consider implementing or strengthening regulations related to board composition, independence, and disclosure practices.

THE IMPACT OF THE TOP MANAGEMENT TEAM FAULTLINES ON ENVIRONMENT, SOCIAL AND GOVERNANCE PERFORMANCE OF LISTED COMPANIES

At present, the research focus on Environment, Social and Governance (ESG) is mainly on the economic consequences of ESG performance, and research on the influencing factors of ESG overall performance is lacking. The top management team plays a decisive role in the decision of ESG investment. To improve ESG performance and promote sustainable development of enterprises. This research explores the influence of different types of top management team faultlines on the ESG performance by using the panel fixed effects model from 2015 to 2019 for the samples of 347 listed enterprises in China, and tests the moderating effect of management incentives. Results show that the relationship-type top management team faultlines is positively correlated with the ESG performance, whereas the task-type faultlines is negatively correlated with the ESG performance. Management compensation incentive will weaken the positive effect of the relationship-type faultlines on the ESG performance, and the moderating effect of the task-type faultlines on the ESG performance is insignificant. Management equity incentive will strengthen the positive effect of the relationship-type faultlines on the ESG performance and weaken the negative effect of the task-type faultlines. Our findings provide a new perspective for how to improve the ESG performance of listed companies by the optimization of corporate governance structure.

Why do sports goods manufacturers choose different corporate social responsibility engagements?

This study examines the impact of financialization and product market competition on the corporate social responsibility (CSR) engagements in sports goods manufacturing industry. Utilizing a dataset of China's listed firms, we employ textual analysis to identify organizations within this sector and create a panel data model to analyze the determinants of CSR engagements. Our empirical findings reveal that financialization and product market competition positively influence shareholder-related CSR engagements. Additionally, product market competition enhances the effect of financialization on these engagements. Conversely, a negative correlation exists between product market competition and stakeholder-related CSR engagements. Moreover, firms not categorized as State-Owned Enterprises (SOEs) or within high-pollution industries show a positive response in CSR engagements to both financialization and product market competition. Our results also highlight that managerial compensation and financial constraints modify the impacts of financialization and product market competition on shareholder-related CSR engagements. Collectively, our findings shed light on the challenges that sports goods manufacturing firms face in aligning their primary goals with CSR commitments.

Internal and external determinants of the use of supplementary pension plans in manager compensation

This study scrutinizes the use of supplementary pension plans (SPPs) in the executive compensation strategies of multinational and multi-Latin firms. The proposed analysis focuses on the internal and external factors that may influence the implementation of SPPs and their role in attracting, retaining, and motivating strategically valuable human capital in the form of executive managers. The analysis was based on in-depth interviews with a range of managers, representatives of multilateral institutions, researchers, and heads of pension funds and mandatory pension plans. Relevant complementary data was obtained from a variety or documentary sources. The paper offers valuable findings and implications for the design of compensation strategies of senior managers of multinational and multi-Latin firms. The study also has implications regarding the use of loyalty mechanisms aimed at developingcompetitive advantages to enhance business performance.

Managing talent and branding in learning organization

PurposeThe success of the organization depends on its sustainability and growth in the competitive market. Retention and attraction of talent in the organization are strongly associated with organizational performance. Employer branding is an outcome activity that helps organizations show their strength to attract and retain talent. Talent management practices are mostly essential in the current context for retaining talent. This study aims to explore and identify the contributing factors in efficient talent management and to examine whether the factors contributing to employer branding differ concerning different demographic profiles of the employees for information technology organizations.Design/methodology/approachData were collected from 617 adult participants using an 85-item questionnaire on talent management comprising 25 domains, developed for the present study.FindingsPrincipal component analysis of the data indicated that 20 different factors make an impact in developing strong talent management practices. Three broad areas were identified, namely, personal benefits and growth, transparent organizational culture and social commitment of the organizations.Research limitations/implicationsPresent research has not taken care of few other factors associated with the organization where employees’ retention gets adversely effected such as evaluation of performance and compensation management, training and development, etc. So, future research can be conducted these areas. These aspects are also required to be incorporated in future research.Practical implicationsSeveral implications of the present research can be presented in the following areas. It is found in the present research that the effectiveness of the talent management system mostly depends on personal benefits and growth, organizational culture and climate and the organizational out. Apart from the academic implications of the present research, practical implications of the present study cannot be ignored. The components and elements of the talent management in the perspectives employer branding can also appropriately applied by the organizations.Originality/valueThe contribution of the study lies in exploring and identifying three important aspects of the organization in talent management. Findings will have implications for different organizations in understanding, developing and implementing policies related to employer branding and talent management.

Analisis Corporate Governance Terhadap Manajemen Pajak Pada Perusahaan Sub Sektor Kosmetik dan Barang Kebutuhan Rumah Tangga yang Terdaftar di Bursa Efek Indonesia

This research aims to determine the influence of management compensation, independent commissioners, and audit committees on tax management. Sample selection used the judgment sampling method with a total of 5 companies in the Cosmetic and Household Needs Sub-Sector listed on the Indonesia Stock Exchange that met the criteria. The analysis method in this study is panel data regression analysis. The research results indicate that the management compensation variable has a significant positive effect on tax management, independent commissioners have a significant positive effect on tax management, and the audit committee variable has a significant positive effect on tax management. Additionally, collectively, the variables of management compensation, independent commissioners, and audit committees have a significant positive effect on tax management.

PENGARUH FASILITAS PAJAK, TINGKAT UTANG, DAN KOMPENSASI MANAJEMEN TERHADAP MANAJEMEN PAJAK

This study aims to empirically prove the effect of tax facilities, debt levels, and management compensation on tax management. This research was conducted in Energy Sector companies listed on the Indonesia Stock Exchange. The type of research used is quantitative. The type of data used is secondary data in the form of annual financial reports published on the Indonesia Stock Exchange (IDX) during 2017-2021. Samples were collected using purposive sampling method in order to obtain as many as 85 observational data. The data was processed using the Eviews 10 Statistical Program to test the hypothesis using panel data regression analysis. Based on the results of the F statistical test simultaneously tax facilities, debt levels, and management compensation together have an influence on tax management. The results of the t statistical test partially tax facilities and management compensation have an influence on tax management. While the level of debt has no effect on tax management.

Impact of Compensation Practice on Employee Informatics a study of Vindhyanchal NTPC Singrauli (M.P.)

Compensation is the remuneration received by an employee in return for their contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non- monetary benefits to employees. Compensation includes payments such as bonuses, profit sharing, overtime pay, recognition rewards and sales commission. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Direct Compensation is typically made up of salary payments and health benefits. The creation of salary ranges and pay scales for different positions within the company are the central responsibility of compensation management staff. Direct compensation that is in line with industry standards provides employees with the assurance that they are getting paid fairly. Indirect Compensation focuses on the personal motivations of each person to work. Although salary is important, people are most productive in jobs where they share the company's values and priorities. These benefits can include things like free staff development courses, subsidized day care, the opportunity for promotion or transfer within the company, public recognition, the ability to effect change in the workplace, and service to others. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards.

The impact of top management team incentive dispersion on Non-GAAP reporting

We examine whether the dispersion of pay-performance sensitivity (PPS) amongst the top management team (TMT) impacts the likelihood of firms disclosing non-GAAP earnings and the quality of non-GAAP earnings. Management compensation contracts are designed to incentivize executive team members individually and in the aggregate. By structuring these contracts to have similar PPS, those charged with governance can increase collaboration amongst the TMT. However, this collaboration can turn into the TMT colluding to make firm decisions that result in the highest compensation for the TMT. Thus, a greater dispersion of PPS can lead to less collusion. We find that the likelihood of firms reporting non-GAAP earnings decreases and the quality of non-GAAP earnings disclosures increases when there is a higher dispersion of PPS. These findings are consistent with executives that are less incentivized by temporary stock price increases suppressing other executives from eliciting firm scrutiny by disclosing non-GAAP earnings and releasing low-quality non-GAAP earnings. Additionally, we find these effects on non-GAAP earnings are more likely to occur in firms with weaker governance and when the management team has a shorter tenure of working together. Overall, our research provides evidence of the association between the dispersion of TMT PPS and non-GAAP earnings decisions.

Assessment of Labor Management Practices in Private Group Housing Developers in Kathmandu Valley

The construction industry is known for its labor-intensive nature, and companies must maintain high labor management standards to complete projects within time and budget. However, challenges related to labor management are common in the industry and can negatively impact project delivery times and costs. In Nepal, housing developers face the issue of not delivering projects on time, leading to increased costs. This study explores the current labor management practices, challenges, and remedial measures in the construction industry of Nepal, with a focus on housing developers in the Kathmandu Valley. The study collected data from 17 building projects using interviews and questionnaires and analyzed the data using the Relative Importance Index (RII) and Spearman's rank correlation coefficient. The findings indicate that labor management issues, including poor communication, planning, inadequate wages, occupational health and safety, labor policy, and unfair treatment, are major challenges faced by housing developers in Nepal. The study recommends implementing better employee staffing, performance evaluation, work environment, training, and compensation management to address these challenges. The results of this study offer insight into current labor management practices and potential solutions for housing developers in Nepal, contributing to the overall success of construction projects. Proper labor management can result in substantial savings in time and cost for construction projects, making this study relevant and valuable to researchers and practitioners in the construction industry. The findings of this research could have important implications for private housing developers in Nepal, as well as for the broader housing sector in developing countries facing similar challenges.

The Effect of Corporate Social Responsibility, Chief Financial Officer Expert Power, Management Compensation, Capital Intensity Ratio and Audit Committee on Tax Avoidance

The Effect of Corporate Social Responsibility, Chief Financial Officer Expert Power, Management Compensation, Capital Intensity Ratio and Audit Committee on Tax Avoidance

Systematic review in financialization politics: the role of corporate governance and managerial compensation

Systematic review in financialization politics: the role of corporate governance and managerial compensation

Human resource management research in healthcare: a big data bibliometric study

Human resource management (HRM) in healthcare is an important component in relation to the quality and efficiency of healthcare delivery. However, a comprehensive overview is lacking to assess and track the current status and trends of HRM research in healthcare. This study aims to describe the current situation and global trends in HRM research in healthcare as well as to indicate the frontiers and future directions of research. The research methodology is based on bibliometric mapping using scientific visualization software (VOSviewer). The data were collected from the Web of Science(WoS) core citation database. After applying the search criteria, we retrieved 833 publications, which have steadily increased over the last 30 years. In addition, 93 countries and regions have published relevant research. The United States and Australia have made significant contributions in this area. Current research articles focus on topics clustered into performance, hospital/COVID-19, job satisfaction, human resource management, occupational/mental health, and quality of care. The most frequently co-occurring keywords are human resource management, job satisfaction, nurses, hospitals, health services, quality of care, COVID-19, and nursing. There is limited research on compensation management and employee relations management, so the current HRM research field still has not been able to present a complete and systematic roadmap. We propose that our colleagues should consider focusing on these research gaps in the future.