Compensation Plans Research Articles

R&D expenditures and CEO compensation policy: The effect of corporate control and market competition on managerial opportunism

AbstractChina and Taiwan (so‐called Greater China) are representative of two of the fastest‐growing economies in the Pacific Rim region. This study uses Taiwanese high‐tech firms as sample and explores whether boards of directors attempt to avoid opportunistic reductions in research and development (R&D) investments by CEOs. This study considers a scenario in which high‐tech firms face a small earnings decline or a small loss but their CEOs could opportunistically cut R&D investments to improve financial results. The focus of this study is to examine how corporate control (whether or not a firm is controlled by a family) and market competition affect the relationship between R&D investments and CEO compensation schemes. Overall, we find that the stock‐based incentive compensation is more effective than the cash compensation in deterring managerial opportunism. In non‐family firms, we find there exists a positive significant relationship between changes in R&D expenditures and changes in CEO stock‐based compensation when a firm is faced with a small earnings decline or a small loss. Specifically, compared to family firms, the boards of directors of non‐family firms face more severe agency problems (as a result of the separation of ownership and control) and therefore tend to significantly adjust the incentive components in CEO compensation schemes to deter managerial opportunism. Regarding the effect of market competition, we find that incentives to adjust compensation plan to remove CEOs from opportunistically reducing discretionary R&D investments are greater in firms facing more intense market competition.

The Role of Common Risk in the Effectiveness of Explicit Relative Performance Evaluation

I examine the effect of relative performance evaluation (RPE) on firm performance and risk-taking behavior. Agency theory suggests that, for firms that experience common shocks, RPE in executive compensation plans improves risk sharing and strengthens incentive alignment by providing more information about managerial effort than firm performance alone. In practice (i.e., in the presence of a finite number of peers), RPE effectiveness depends on the extent of firms’ common risk exposure and the amount of common risk captured by RPE peers. I develop a simple model that predicts that the benefit of using RPE exceeds the cost of adding noise from peers when the amount of common risk removed is large. Consistent with predictions, I find empirically that RPE firms perform better than similar non-RPE firms when there is high common risk exposure and the common risk removed by the selected peers is high. I also find that, in these circumstances, the use of RPE is associated with greater firm risk and a lower likelihood of underinvesting. Overall, my study provides evidence that RPE is associated with better risk sharing and stronger incentive alignment when (1) RPE firms are exposed to high common risk and (2) RPE peers are effective in removing common risk for performance evaluation. This paper was accepted by Brian Bushee, accounting. Funding: F. M. Tice gratefully acknowledges financial support from Texas A&M University and the University of Colorado Boulder. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4764 .

Commissioning and dosimetric validation of a novel compensator-based Co-60 IMRT system for evaluating suitability to automated treatment planning.

A novel compensator-based system has been proposed which delivers intensity-modulated radiation therapy (IMRT) with cobalt-60 beams. This could improve access to advanced radiotherapy in low- and middle-income countries. For this system to be clinically viable and to be adapted into the Radiation Planning Assistant (RPA), being developed to offer automated planning services in low- and middle-income countries, it is necessary to commission and validate it in a commercial treatment planning system (TPS). The novel treatment device considered here employs a cobalt-60 source and nine compensators. Each compensator is produced by 3-D printing a thin plastic mold which is then filled on-demand within the machine with reusable 2-mm-diameter spherical tungsten balls. This system was commissioned in the Eclipse TPS and validation tests were conducted with Monte Carlo using Geant4 Application for Tomographic Emission for percentage depth dose, in-plane profiles, penumbra, and IMRT dose validation. And the American Association of Physicists in Medicine Task Group 119 benchmarking testing was performed. Additionally, compensator-based cobalt-60 IMRT plans were created for 46 head-and-neck cancer cases and compared to the linac-based volumetric modulated arc therapy (VMAT) plans used clinically, then dosimetric parameters were evaluated. Beam-on time for each field was calculated. In addition, the measurement was also performed in a limited environment and compared with the Monte Carlo simulations. The differences in percent depth doses and in-plane profiles between the Eclipse and Monte Carlo simulations were 0.65%±0.41% and 1.02%±0.99%, respectively, and the 80%-20% penumbra agreed within 0.46±0.27mm. For the Task Group 119 validation plans, all treatment planning goals were met and gamma passing rates were>95% (3%/3mm criteria). In 46 clinical head-and-neck cases, the cobalt-60 compensator-based IMRT plans had planning target volume (PTV) coverages similar to linac-based VMAT plans: all dosimetric values for PTV were within 1.5%. The organs at risk dose parameters were somewhat higher in cobalt-60 compensator-based IMRT plans versus linac-based VMAT plans. The mean dose differences for the spinal cord, brain, and brainstem were 4.43±1.92, 3.39±4.67, and 2.40±3.71Gy, while those for the rest of the organs were<1Gy. The average beam-on time per field was 0.42±0.10min for the 6 MV multi-leaf-collimator plans while those for the cobalt-60 compensator plans were 0.17±0.01 and 0.31±0.01min at the dose rates of 350 and 175 cGy/min. There was a good agreement between in-plane profiles from measurements and Monte Carlo simulations, which differences are 1.34±1.90% and 0.13±2.16% for two different fields. A novel compensator-based IMRT system using cobalt-60 beams was commissioned and validated in a commercial TPS. Plan quality with this system was comparable to that of linac-based plans in all test cases with shorter estimated beam-on times. This system enables reliable, high-quality plans with reduced cost and complexity and may have benefits for underserved regions of the world. This system is being integrated into the RPA, a web-based platform for auto-contouring and auto-planning.

IMPACT OF TEAMWORK ON THE PERFORMANCE OF THE EMPLOYEES IN THE NON-GOVERNMENTAL SECTOR

Teams are considered one of the most important components in today's corporate world. As a result, employee productivity and the company's overall performance are suffering. Lebanese NGOs, which are notoriously bad at collaborating, are in particular need of this kind of assistance. Thus, the main purpose of this research is to investigate the importance of cooperation in the workplace and find out what is needed to create an ideally productive and efficient team in the workplace. Managers and leaders understand the importance of collaboration in the workplace when it comes to achieving company goals and objectives. To collect the most important information from respondents, Google Docs used a standard questionnaire that was sent via email. The survey was distributed over 300 respondents to collect data, and only 250 respondents answered the questionnaires. The data was analyzed using the SPSS statistical tool to generate the results. As a result, the NGO that uses collaborative methods in the workplace performs better than the NGO that does not. It was discovered that NGOs gain from greater cooperation due to improved communication. Compensation plans improve the performance of teams in non-profit businesses, according to research. Researchers have found that higher levels of remuneration in the workplace are associated with higher levels of team performance. This implies that when the NGO's goals are achieved, the efforts of a team should be recognized and rewarded.

Interest Equilibrium and Path Choice in the Development of Construction Land Decrement: A Theoretical Analysis Based on the Multi-Agent Game Model

High-quality development is a new-era requirement for modern urban construction. The implementation of construction land decrement has become an inevitable choice to solve the urban land use dilemma and achieve high-quality social and economic development. It is a game process for stakeholders. Based on the multi-agent game model, this research analyzes the game relationship and strategy selection between governments, government and farmers, government and developers, and developers and farmers and examines the balance of interests among multiple subjects. From the perspective of space dimension, index dimension, use dimension and time dimension, a game path is constructed for construction land decrement. The research shows the following: There is a clear relationship between the supervision cost of the higher-level government and the intensity of rewards and punishments for the lower-level government and the implementation of the decrement. The district (county) government’s compensation plan and farmers’ perceptions of the success of the boycott will affect the strategic choices of both parties. Governments at all levels play a direct role in restraining development behavior and supervising rent-seeking behavior after developers intervene in volume reduction. It also proposes optimizing the ratio of game factors such as costs, benefits, rewards, verification and punishment to achieve the game equilibrium of the expression of the interests of village residents, developers and governments at all levels. Based on the path planning and coupling of response, the multi-scheme dynamic path selection for the development of construction land decrement is realized.

Fairness and Luck: Contract Away or Come What May?

ABSTRACTPrior research shows that managers use discretion to reduce the effect of “bad luck” on employees’ performance-based compensation, but not to reduce the effect of “good luck,” due to fairness concerns. In a setting without manager discretion, we investigate whether objective compensation plans that account for luck can be used to reduce fairness concerns. We show that although such compensation plans are perceived as fairer ex ante, they do not produce uniformly higher perceived fairness ex post. Individuals who experience bad luck believe their compensation is fairer if the compensation plan limits the effect of luck on their compensation than if the compensation plan allows luck to influence their compensation. In contrast, individuals who experience good luck believe their compensation is less fair if the compensation plan limits the effect of luck on their compensation. These findings highlight the complex relationship among incentives, employee selection, retention, satisfaction, and motivation.JEL Classifications: D8; J3; M52.

Assessment of PT. XYZ’s Change Management Initiatives towards Employee Readiness in Organization Restructuring

Digital content and influencer marketing leader PT. XYZ Located at the crossroads of content, platforms, and brands, aims to revolutionize content creation, distribution, and consumption in Asia. Singapore, Kuala Lumpur, Seoul, Tokyo, Manila, Shenzhen, Hong Kong, and Jakarta are the 8 Asia Pacific offices (including Philippine after the merger with Indonesia). Organizational reorganization is essential, according to PT. XYZ. After Q1–Q3 2021 revenue declines, this campaign was launched. Employee readiness to adopt the new organizational structure must be assessed. This study assesses staff readiness for the new organizational structure and then determines the best approach to address current and future results. For the Managing Director and HR Manager, the writers use the Kotter 8-Steps model, followed by the ADKAR model for Leader Functions and their personnel. This study found that employees are aware of company changes, although their views on the need for change vary. Some employees reject the idea despite knowing it will boost business success. This is largely due to a lack of accurate information and change-specific training. Because leaders want to help, employees are ready for change. Unfortunately, there is no assessment system with clear success criteria, making it difficult to determine which appraisals were beneficial. Especially without prizes or recognition to motivate improvement. Thus, improvements are needed, such as forming appropriate guiding coalition teams with the same goals, one-on-one meetings with employees, providing training to support new hires, launching short-term wins, publishing change progress reports, and HR system alignment in compensation, promotion, and succession planning.

공연예술 서비스 실패 유형이 서비스 회복에 미치는 영향

The purpose of this study is to investigate the effect of performing arts service failure types on service recovery and the mediating effects of cognitive response and emotional response compensation between them. 312 subjects who experienced performing arts service failure within 5 years were the study subjects, and SPSS 26.0 and AMOS 26.0 statistical programs were used for analysis. As a result of the study, it was found that among the failure types of performing arts service, human failure had an effect on cognitive response compensation and emotional response compensation, respectively. In addition, the mediating effect of cognitive and emotional compensation in the relationship between human failure and service recovery was confirmed. The conclusion of this study explained the importance of compensation plans when human failure occurred during performing arts services and suggested a compensation manual for service recovery.

Cryptocurrency Compensation: Look Before You Leap

In recent years, cryptocurrency has begun to ascend as a worldwide phenomenon. As a result of its rising popularity, prospective and existing employees have taken an interest in receiving payment in cryptocurrency. This appeal has prompted compensation professionals and other leaders to consider incorporating cryptocurrency into their compensation strategies. While this form of payment may present as an innovative compensation plan, compensation professionals should be fully aware of the complexities involved and the potential challenges associated with its application. This article provides an overview of cryptocurrency and blockchain technology, reasons why employees may want to be paid in cryptocurrency, pertinent legal/regulatory factors, administrative challenges for employers, associated risks, and recommendations for compensation professionals who may be considering integrating cryptocurrency into their compensation strategies.

Performance Analysis of Hybrid Kinematic Mechanism for Fusion Reactor Maintenance

The hybrid kinematic mechanism (HKM) as an alternative remote handling subsystem of the Demonstration Fusion Power Plant (DEMO) breeding blanket (BB) is undergoing extensive theoretical analysis and feasibility verification. In this paper, the forward and inverse kinematic models of the HKM are derived by combining the Newtonian iterative method and the analytical method. Cartesian space trajectory planning is designed based on the trajectories of the HKM lifting of inboard and outboard BBs. The continuous smooth inverse kinematic solutions in the HKM joint space are obtained based on the polynomial interpolation method. For the characteristics of the HKM piston thread driving, the end-effector position error caused by the degradation of the spherical joint into a universal joint is analyzed and calculated. During the lifting of the left inboard BB, there is a maximum absolute error ∆P = 3.1 mm, and as the error continues to expand to the bottom of the BB it causes a risk of collision. Combining the overall effects of driving control, rigid–flexible coupling, etc., on position accuracy, an open-loop variable parameter error compensation plan based on the Levenberg–Marquardt (LM) nonlinear damping least-squares algorithm is proposed and validated in this paper. The simulation results show that the maximum absolute error after compensation is less than 1 mm as the mesh density increases, and the absolute position accuracy can be further improved by local mesh encryption. This study verifies the feasibility of the HKM as a BB remote handling subsystem and provides an option for high-precision control of the HKM.

IMPACT OF DEVELOPMENT OPPORTUNITIES AND COMPENSATION ON EMPLOYEE RETENTION: A COMPARATIVE STUDY ON BANKING INDUSTRY OF BANGLADESH

This descriptive study investigated the relationship between development opportunities and compensation with employee retention. Analyzing two turnover determinants, development opportunities, and compensation, and their impact on the banking sector and comparing them to find a more effective retention factor is the main goal of the study. Data were collected from national, foreign, private, and specialized banks employee throughout Bangladesh, and 234 employees were chosen from the population of 197,599 using the convenience sampling method. The study questionnaire was prepared using a five-point Likert scale and which sent to the respondent online and personally. To examine the primary data IBM SPSS version 23 (Statistical Package for the Social Sciences) was used and the result of the independent sample t-test was found that statistically there is no significant difference in the case of different gender on employee retention. Coefficient correlation finds that development opportunities and compensation are significantly correlated with employee retention but multiple regressions find that compensation is more significant than development opportunities on employee retention. Managers need to project compensation plans perceived by employees at different levels so that the organization's goal can be easily reached. Previous studies that are on employee retention measured the impact of development opportunities and compensation. But this study considers the comparative impact regarding the use of which one is most significant for employee retention.&lt;p&gt; &lt;/p&gt;&lt;p&gt;&lt;strong&gt; Article visualizations:&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;img src="/-counters-/edu_01/0202/a.php" alt="Hit counter" /&gt;&lt;/p&gt;

The use of non-financial performance metrics in determining directors’ remuneration: The case of listed companies in South Africa

Despite the increasing importance of environmental, social and governance (ESG) factors, it is not fully understood whether companies consider these factors when designing compensation plans for their directors. This study investigated the extent to which directors’ remuneration integrates ESG factors. The study sample is made up of JSE-listed companies for the period 2015 to 2021. The estimated generalised least squares regression technique was used to analyse the data. The results show the shift towards the integration of ESG factors in directors’ compensation plans. It should be established which ESG factors are pertinent in the South African context.

Effect of Employee Management Practices on Employee Performance in Trans Nzoia County Government, Kenya

This paper examines the relationship between human resource management practices and employee performance in Trans Nzoia County government. Despite receiving considerable funds from the National Treasury and other local revenue, underperformance as a problem among employees characterizes most of the county governments in the country; underperformance in the county is depicted by failure to meet set targets, late coming, unjustified absenteeism, and unsatisfactory revenue collection. The paper specifically focused on the influence of compensation and career management practices on employee performance. The paper is an output of a study that was carried out on “human resource management practices and employee performance” in Trans Nzoia County. The study was guided by Human Capital Theory advanced by Theodore Schultz. It employed a correlational survey design. The target population comprised all the102 employees attached to the Department of Public Service Management in Trans Nzoia County. A questionnaire was used to collect primary data. Both descriptive and inferential statistics were used to analyse the collected data. The regression analysis results indicated that both compensation and career management practices (β1= 0.462, P value=0.000&lt;0.05 and β4 = 0.579, P value=0.000&lt;0.05) respectively had a significant positive effect on employee performance. It was concluded that both compensation and career planning affect employee performance. The paper thus, makes contribution to the extant literature regarding relationship between HRM practices and employee performance by establishing that compensation and career management practices are essential in predicting employee performance specifically in Trans Nzoia County government since a similar study had not been conducted in the area. Furthermore, the study recommends that county governments in Kenya should design effective compensation policy that will ensure employees are compensated according to the value they bring to the organization and the market standards, additionally employees should be allowed to embrace career planning prospects in fast tracking their career goal progress, self-management and professional abilities.

Crypto Multi-Level Marketing – Advocating for a Downline Centered Compensation Plan in Africa

Crypto Multi-Level Marketing – Advocating for a Downline Centered Compensation Plan in Africa

Krishihut: A Multivendor-Based Agricultural Secure E-Commerce System for Reducing Price Hike in Bangladesh

Bangladesh places a high value on agriculture, but because of the country’s extreme poverty, individuals who work in it are currently from lower socioeconomic classes and face many challenges in their everyday life. Agriculture contributes around 5.3Lack of knowledge about cutting-edge techniques or technology contributes to farm poverty. Farmers still face pressure from market actors despite their effort and produce, which results in poverty. To enable direct sales between farmers and customers, middle men’s marketing-related roles must be eliminated. The section will offer advice to farmers on all topics, including the current market value of various products, the over- all market value and profitability of products sold, access to new e-learning farming techniques, various agricultural-related issues, and an inside look at various agricultural government strategies, such as agricultural compensation plans. By leveraging direct farmer to consumer connection and conversation with farmers, this website assists farmers in ensuring optimal profitability. Through this optimization platform, the farmer and the client can communicate more effectively.

Shrink to Greatness? Evidence from Accounting-return Based Compensation Plans

Shrink to Greatness? Evidence from Accounting-return Based Compensation Plans

Factors that Influence Followers to Be a Future Ethical Leader

This literature review study connects such elements to relevant ethical theories (such as utilitarianism, libertarianism, Kant's ethical theory, and fairness and justice), focusing on the characteristics that empower people to become future ethical leaders. This research attempts to investigate the idea of ethical leadership, the significance of ethical leadership in an organization, determining components to be an ethical leader, and strategies to turn followers into ethical leaders from the intersection of the literature reviews on ethics and leadership. A major research question directed the study: what are the factors that inspire followers to become future ethical leaders? Based on data found from the various books and articles, different databases and a list of keywords used during the search. According to the research outcomes, two key influences—(a) an individual's moral worldview and (b) organizational culture and ethics—can motivate followers to become moral leaders. Family influences, religious conviction, educational institutions, peer influences, and culture have an impact on an individual's moral philosophy. Besides organizational culture and ethics consists of code of conduct, work-life balance, recruitment procedure, compensation plan, role model, training, and further development. The influencing factors were discussed and recommended further research area. The relevant elements were explored, and further research area was suggested. IUBAT Review—A Multidisciplinary Academic Journal, 5 (1): 77-88

Engaging the sales force in digital solution selling: how sales control systems resolve agency problems to create and capture superior value

PurposeDigital solutions (DS) that build on recurring revenue models (RRMs) offer new opportunities to continuously create and capture superior value. However, many firms fail to engage their sales force in digital solution selling (DS selling), leading to agency problems that receive little attention in literature. This study aims to examine the drivers of agency problems that surface in the transition toward DS selling and the sales control systems that resolve these problems.Design/methodology/approachThe authors conducted a qualitative, inductive study. Data were collected from interviews with 72 marketing and sales managers representing 53 industrial firms transitioning toward DS selling.FindingsDS selling is subject to adverse selection and moral hazard caused by motivation-related, opportunity-related and ability-related drivers. Input, capability, activity and outcome controls – detailed in this study – can resolve these agency problems.Research limitations/implicationsThe limitations of this study’s methodology and scope suggest several directions for future research. Methodology-wise, the authors mainly relied on cross-sectional interview data from informants in Central and Northern Europe. Scope-wise, more research is needed on the capabilities, processes and steering instruments supporting DS sales. Finally, only now do the authors begin to understand which compensation plans motivate DS selling.Practical implicationsThe controls identified in this study help managers to steer their sales force in DS sales.Originality/valueTo the best of the authors’ knowledge, this study is the first to investigate DS sales control systems. Thereby, the authors enhance prior understandings of solution selling, agency problems and sales control systems.

Executive Compensation and Company Performance: Pre- and Post-Marikana Uprising Analysis

Background: Executive compensation has become a controversial topic globally. Recent and past incidents of labour unrest, including those that plagued the South African mining sector in 2012, highlighted the level of controversy on the subject. Purpose: The purpose of this study was to investigate the relationship between executive compensation and company performance in the mining sector of the Johannesburg Stock Exchange (JSE). Methodology: The study was quantitative in nature and used purposive sampling in selecting 28 mining companies listed on the JSE. Estimated generalised least squares (EGLS) and seemingly unrelated regression (SUR) were used to analyse unbalanced panel data spanning from 2007 to 2018. Findings: The results show that there is no relationship between executive compensation and market value added (MVA), revenue growth (RG), return on assets (ROA), and return on equity (ROE) both before and after the Marikana event. In the period before the Marikana event, 2007–2012, economic value added (EVA), share price (SP) and total assets (TA) were statistically significant in explaining variability in executive compensation. However, in the post-Marikana period, 2013–2018, only the TA and earnings per share (EPS) are statistically significant in explaining the variability in executive compensation. Value: This study offers a practical contribution to policy makers and practitioners on pertinent performance measures that can aid in minimising agency costs when designing executive compensation plans.

Rethinking Workplace Ecosystem during Crisis Recovery Period: Lessons from COVID-19

Purpose: The aim of the study was to rethink how workplace ecosystem should be modelled during crisis recovery period with lessons from COVID-19 pandemic.&#x0D; Methodology: The study adopted a desktop review of literature on publications, interviews and surveys by major global consultancy firms. This method established an extensive data research using online data sources. Only resources relating to the topic under study were considered for inclusion.&#x0D; Results: The analysis of the data resulted in a process that led to a core category that showed how the workplace can be re-imagined, re-improved and re-invented, during and after the COVID-19 pandemic, where five different strategic categories to achieve that target were identified within this process. These strategic categories are; opportunity to break with the past, workplace redesign, technology, digital strategy, and remote working and new sense of workplace.&#x0D; Conclusion: COVID-19 exposed many weaknesses and issues that have been present in business for a long time, in particular how to carry out daily activities from physical to virtual interactions perspective. In the new way of operating, companies are able to identify which roles need to be carried out face to face or which of them do not, and to what extent.&#x0D; Recommendations: The study recommend human resources managers to position themselves as HR who are designed for speed, new ways of working, digital first, teams, adaptable organizational strategies, and changing business requirements. As organizations rethink work, it is important they communicate how and why they are redeploying workers and identify how this supports new business priorities. This includes providing context and rationale for changes and clear communication on new workforce policies. The study also recommend HR leaders to reassess and explain compensation and promotion plans for the short term while managing expectations through the recovery process and toward sustainable operations.