Compensation Plans Research Articles

Error compensation and path planning for sheet metal bending process based on improved modeling algorithms

Error compensation and path planning for sheet metal bending process based on improved modeling algorithms

Use of an Ecological Compensation Model in Water Resource Development: A Case Study from Shaanxi Province, China

This study aims to analyze the current situation of water resource management in Shaanxi Province, study the basic principles of ecological compensation, evaluate the impact of water conservation projects on the ecological environment by establishing a model, and propose a sustainable water resource management model. Hanzhong City has certain typicality and representativeness within Shaanxi Province, and the problems it faces in water resource management and ecological environment may represent the entire province or similar regions. At the same time, Hanzhong City has rich data and research foundations. Therefore, by conducting a detailed analysis of the current water resource status in the Hanzhong City area of Shaanxi Province, the problems in current water resource management are revealed, and the basic principles of ecological compensation are intensely studied. The original ecological compensation plan in Shaanxi Province has been summarized. Guided by the concept of sustainable development, an ecological compensation model is established using algorithms, and the model is applied to sustainable water resource management. Establish a model for water conservation and water resource management through data collection, preprocessing, and cleaning, and apply it to practical cases in Hanzhong City. Through simulation and analysis of Hanzhong City, the new water resource management model effectively mitigates the adverse effects of water conservation projects on the ecological environment while improving water resource utilization efficiency. The changes in various environmental parameters indicate that the new plan has improved the ecological environment. Through the application of the model, the ecological compensation plan formulated has achieved sustainable protection of the ecological environment while promoting economic development. This study proposes a sustainable water resource management model through a comprehensive study of water resource management and ecological compensation in Shaanxi Province and verifies it in practical cases, demonstrating that the model has not only good applicability but also has significant effects in promoting economic growth and ecological environment protection.

Using Generative AI for Strategic HR Planning: How AI Can Elevate Your People Strategy

This article explores how generative artificial intelligence (AI) technologies such as machine learning and deep learning can be applied to enhance strategic human resource (HR) planning. Drawing from academic literature and industry case studies, the article outlines key techniques of gen AI and principles for responsible implementation. It then discusses specific opportunities for gen AI to elevate HR processes like recruiting, training, performance management, compensation planning, and cultural transformation from descriptive to prescriptive levels through data-driven decision making and insights. Aligning AI goals with organizational values around diversity, ethics and worker well-being is emphasized. The essay aims to translate technical concepts into practical recommendations while arguing that when guided properly, gen AI shows strong potential to empower HR leaders and elevate their people strategy through personalization, prediction, continuous improvement and robust measurement of ROI.

Improving Commitment among Employees with Human Resource Management Practices: Evidence from Insurance Companies

Developing a committed workforce is critical to the success of today's businesses. In this regard, this study aims to analyze the association of HRM practices on commitment among employees of Nepalese insurance companies. This study employs a descriptive research approach. 30 sets of questionnaires in each of the six insurance companies were distributed. The study reveals a positive and significant relationship between employee commitment and HRM practices in insurance companies. The results reveal that an effective and enhanced compensation plan is vital since it clarifies the staff's developing position and gives them a better long-term perspective. Organizing training and development events regularly for employees to improve their abilities, stimulate innovation, and improve performance is also critical for increasing employee commitment. Furthermore, companies should implement a successful system for performance reviews to assist employees in carrying out their obligations. Such practices ultimately help in improving employee commitment.

The Impact of the Sarbanes-Oxley Act on Takeover Protection Provisions

We investigate the effects of the Sarbanes-Oxley (SOX) Act on corporate governance metrics, such as the takeover protection provisions and the governance index (G-index). We look at provisions related to takeover protection such as severance agreements, indemnity contracts, golden parachutes, compensation schemes, director liability and indemnity. We examine the effects of SOX between the two periods, designating the 1998–2000 timeframe as the pre–SOX period and the 2002–2004 timeframe as the post–SOX period. Then, in order to determine whether these provisions were affected in any way after 2004, we compare the values from 2004 to the values from 2006. We discover that between the pre-SOX and post-SOX periods, the G-index mean score had increased, indicating a declining degree of total shareholder rights. When we examine the six protection provisions, we discover that two of them—compensation plans and golden parachutes—had deteriorated (i.e., the percentage of firms using these measures had increased) and four of them—indemnification contracts, severance agreements, director indemnity, and director liability—had improved. Put differently, following the passage of the Act, businesses began to select different takeover protection options. However, the SOX's long-term effects were restricted to two variables only. After 2004, the proportion of companies employing golden parachutes climbed (i.e., negatively), whilst the percentage of companies utilizing severance agreements decreased (i.e., positively). We conclude that, in general, the SOX Act had a favorable effect on the majority of the measures that we looked at, with the exception of two measures: golden parachutes and compensation schemes.

Mergers and Acquisitions, CEO Compensation, and Corporate Governance in the Hospitality and Tourism Industry

Drawing on agency theory, we explore the relationship between mergers and acquisitions (M&As) and chief executive officer (CEO) compensation in the hospitality and tourism (HT) industry. Specifically, we investigate whether growth via acquisitions, a popular strategy in the HT industry, is influenced by CEO compensation. Using a sample of HT and non-HT firms for comparison from 1992 to 2019, we find that CEO compensation is significantly higher after acquisitions for both HT and non-HT firms. However, when controlling for common compensation determinants, CEO compensation is significantly higher in HT firms but not in non-HT firms. Surprisingly, in our sample, corporate governance is not significantly related to changes in CEO compensation post-acquisition. In addition, while the fraction of cash-based compensation is negatively related to M&A propensity in both HT and non-HT firms, the fraction of equity-based compensation is unrelated to M&A propensity in HT firms. Our study fills an important gap in the sparse literature on the link between M&A and CEO compensation in the HT industry, providing theoretical implications for future research and managerial implications for boards of directors to design compensation plans that align the interests of managers and shareholders.

Analysis of the socio-environmental impacts of an environmental disaster caused by a minining company in the city of Maceió, Brazil

In mid-2018, several neighbourhoods in Maceió, Brazil, were affected by soil subsidence in the region. Since then, unprecedented developments and consequences have been observed in the affected areas. Against this backdrop, the study aims to analyses the socio-environmental impacts suffered by the five neighbourhoods affected by subsidence from rock salt extraction in the municipality of Maceió, Alagoas, Brazil. We collected secondary data from documents (Geological Survey studies, information made available by the Federal Public Prosecutor's Office, Compensation Plan, Terms of Agreement, Socio-urban Action Plan, Environmental Impact Study, Study of the Economic Impact of the Disaster) to assess the socio-environmental impacts caused by the socio-environmental disaster. These data were analysed using Checklist, Interaction Matrix, and Delphi. The results highlight the complexity of the effects since they were observed from a multidisciplinary approach. In addition, it is clear that these impacts were relevant and important from the specialists' point of view and, when analysed quantitatively and qualitatively,such as impacts on identity and cultural aspects, change in standard of living, and overload in the provision of public facilities, which had a high degree of impact when evaluated in this study. The study also concluded that it is pertinent to take measures to mitigate the impacts indicated as possible through integration between public authorities and the mining company. Upon its completion, a technical product in the form of a document containing the identified mitigation measures was submitted to the competent authorities. These results can be relevant for practitioners and policymakers involved in decisions related to mining operations.

Executive compensation: The trend toward one-size-fits-all

I report and analyze a recent “one-size-fits-all” trend in the structure of executive compensation plans. Since 2006, 24% of the variation in the distribution of CEO compensation across pay components — salary, bonus, stock awards, options, non-equity incentives, pensions, and perquisites — disappeared. This uniformity might come at the expense of optimal incentives, as increases in pay structure similarity translate into lower shareholder value. Using panel data regressions and plausibly exogenous shocks, I find that institutional investors’ influence, proxy advisors’ recommendations, and expanded compensation disclosure are salient drivers of this standardization. The findings highlight an unintended consequence of recent regulations enhancing shareholders’ participation and expanding compensation disclosure.

Heterogeneity in the integration of ESG measures in executive compensation: Determinants, contracting details and outcomes

Corporate social responsibility (CSR) contracting incorporates environmental, social, and governance (ESG) related measures in executive compensation plans. Current research on this practice is limited to a US setting, despite global adoption. We investigate heterogeneity in CSR contracting using data from 59 countries between 2002 and 2019. We find that besides firm-level past ESG performance and the industry-level adoption rate, country-level ESG regulations have significant explanatory power in firms’ tendencies to adopt CSR contracting. Hand-collected data reveal significant cross-country differences in CSR contracting details. Finally, CSR contracting is positively associated with subsequent financial performance only in countries with more stringent ESG regulations and stronger legal enforcement. In contrast, CSR contracting is associated with subsequent ESG performance regardless of country-level factors.

Unified framework for geometric error compensation and shape-adaptive scanning in five-axis metrology systems

In response to the escalating demand for precise shape metrology of complex optical surfaces, this study unveils a unified geometric error compensation and trajectory planning framework tailored for high-accuracy five-axis scanning metrology systems, which remains a notably underexplored field compared to error compensation in machine tools. Founded on a unified geometric model, the proposed framework seamlessly integrates a versatile shape-adaptive trajectory planning strategy, a thorough global error sensitivity analysis approach, and an exhaustive geometric error compensation scheme. Leveraging inverse kinematics, an innovative shape-adaptive scanning trajectory generation strategy is mathematically formulated, thereby facilitating adaptable measurement trajectory generation for diverse surface geometries. Employing forward kinematics, an exhaustive geometric error model is established to extensively address the 53 distinct geometric errors in the metrology system. This proposed error model fundamentally augments conventional geometric error models in machine tool by managing not only the geometric errors from the motion system, but also those from the probe and workpiece. To streamline the error compensation procedure, a novel global error sensitivity analysis approach is introduced, identifying both system-oriented and process-oriented sensitive geometric errors for targeted compensation. Experimental validation using a standard ball, which achieved an exceptional 89.35% reduction in the root mean square of the measurement errors, further confirms the feasibility and effectiveness of the proposed framework. By offering an universal trajectory planning, sensitivity analysis and error compensation trinity for five-axis scanning metrology systems, this study sets the stage for precision advancements and design optimization across diverse configurations of metrology systems.

Regulatory and investor demands to use ESG performance metrics in executive compensation: right instrument, wrong method

ABSTRACT The growing acknowledgment of the need to transition to sustainability in corporate governance has led to the scrutiny of and the infusion of non-financial environmental, social, and governance (ESG) goals into the traditional incentive-based executive remuneration frameworks. The swift adoption of ESG metrics in executive compensation by global corporations and their endorsement by influential institutional investors and various regulatory bodies highlight this trend. This article challenges the effectiveness and necessity of universally applying standard ESG metrics in compensation structures and aims to construct a framework for a more contextual and nuanced application of ESG-linked executive compensation. The analysis highlights the limitations of ESG objectives unrelated to shareholder value and demonstrates the limited circumstances where some company specific ESG objectives can drive rapid changes in targeted performance by drawing attention to these objectives. These findings question the evolving practice of a uniform integration of ESG metrics in compensation plan design of all companies and urge regulators, institutional investors, and corporate boards to adopt a more tailored, focused, and selective strategy in integrating ESG metrics into executive pay.

Linking executive pay to ESG goals: the role of board gender diversity

PurposeIn recent years, US firms have increasingly integrated ESG performance goals into their executive remuneration packages. This study examines the relationship between board gender diversity and the tendency of firms to incorporate ESG metrics in performance-based compensation using data from US firms. The key questions this study addresses are: Are firms with more females on the board more likely to link executive compensation metrics? What components and types of ESG metrics are more likely to be adopted by firms with more females on the board?.Design/methodology/approachThis study employs OLS regression, logistic regression, as well as instrumental variable, propensity score matching, and entropy balance methods to establish causality.FindingsThis study finds that firms with gender-diverse boards are more likely to shape their executive remuneration plans to be more ESG-oriented. The most significant positive relationship is observed with environmental and social sub-categories. The results also demonstrate that female directors are more likely to encourage firms to evaluate managers based on absolute and short-term ESG goals.Originality/valueThis study is one of the early studies that examine the adoption of ESG performance goals into executive compensation plans. It contributes to the existing literature by exploring the relationship between board gender diversity and the probability of firms incorporating ESG performance goals into executive compensation packages using a sample of US firms.

How do executive excess compensation affect enterprise technological innovation: Evidence from a panel threshold model of chinese biopharmaceutical companies

This study examines the levels of executive excess compensation (EEC) that stimulate the quality and efficiency of enterprise technology innovation (ETI). Using a behavioral agency perspective, we investigate how companies achieve superior ETI by providing sufficient incentives to motivate executives to perform to the best of their abilities. We use a panel threshold model based on a sample of Chinese-listed biopharmaceutical companies and find that: (1) providing an EEC between 0.0592 and 0.1907 significantly affects the promotion of ETI quality; (2) regarding ETI efficiency, executives generally do not receive the compensation that they deserve; and (3) the existing EEC has a weak negative impact on ETI efficiency, gradually disappearing as compensation increases. Heterogeneity analysis reveals that restricting EEC to the eastern area and strengthening the supervision of EEC in state-owned enterprises are effective measures for stimulating ETI. We advance the literature by providing guidance on compensation plans to companies in different regions.

Emerging Opportunities and Potential Areas for Growth in the Indian Direct Selling Industry

The Indian Direct Selling Industry, characterized by its dynamic nature and rapid evolution, stands at a critical juncture where emerging opportunities and potential areas for growth beckon. This research paper, based on comprehensive analysis of secondary data sources, seeks to provide a holistic understanding of this industry and its future prospects. The paper commences by assessing the current state of the Indian direct selling industry, analyzing data and reports to delineate its growth trajectory, market size, and prevailing market dynamics. It then delves into an examination of the regulatory framework governing direct selling in India, scrutinizing the Direct Selling Guidelines of 2016, which establish the legal boundaries of industry operations. The core focus of this study is to identify emerging opportunities within the Indian direct selling landscape. The research reveals that the integration of e-commerce platforms, social media as a pivotal marketing tool, and the growing emphasis on sustainability and ethical consumption are key areas of evolution. The industry's adaptation to regional and cultural diversity is also instrumental in tapping into diverse consumer preferences. These emerging opportunities have the potential to reshape the industry's future. The role of sustainability and ethical practices within the direct selling industry takes center stage, demonstrating how responsible business conduct, ethical compensation plans, and a commitment to corporate social responsibility can foster trust and strengthen consumer and direct seller relationships. Finally, the paper provides insights into potential areas for growth and development within the Indian direct selling industry. These areas encompass market expansion into rural regions, digital transformation, product diversification, community impact, and customized approaches to meet regional preferences. In summation, this research paper offers a roadmap for stakeholders in the Indian direct selling industry, from companies and direct sellers to policymakers, by providing a comprehensive analysis of the industry's current state and future potential. As the industry evolves, it is poised to capitalize on these emerging opportunities and growth areas, shaping the future of direct selling in India. Keywords: Direct Selling, e-commerce, sustainability, product diversification.

Surgeon compensation in academic medicine

Academic surgery is the best career one could ever aspire to have; however, given the long duration of training and the anticipated education debt, surgeon compensation has not kept pace with the compensation of other comparable careers. As surgeon compensation has experienced increased downward pressure, it has become of growing importance to those in academic medicine/surgery. Competitive compensation is necessary, even if not sufficient, for successful faculty recruitment and retention. The optimal compensation system should encourage the best possible patient care, inspire teamwork, maximize the department’s or physician practice’s ability to recruit and retain faculty, support all missions, and be viewed as equitable and transparent. The goal of an optimal compensation system is to have faculty minds focused on things other than compensation—those elements of their job that are most important, such as career development, multidisciplinary clinical programs, research, and education. One way to ensure that compensation stays in the background for academic surgeons is for leadership to keep this front and center. Compensation plans can influence behavior and time management and affect the clinical, academic, and educational contributions of surgeons and physicians of all specialties. As we strive to optimize the productivity and engagement of a health system’s most valuable resource—those who deliver surgical care and create new knowledge—compensation is an important variable in need of constant attention.

Assessing the compensation and reinvestment plans for fuel subsidy rationalization in Nigeria: A dynamic computable general equilibrium approach

Ending subsidies on fossil fuels is vital for tackling the climate crises and promoting a transition to cleaner energy systems. However, ensuring a successful subsidy reform requires a detailed understanding of its potential impacts and measures to ameliorate those impacts. This study employs a dynamic computable general equilibrium model to examine the impact of fuel subsidy rationalization in Nigeria and evaluate the proposed compensation and reinvestment plans of the government in minimizing welfare losses and reviving economic activities. We found that a complete, one-off removal of fuel subsidies results in severe economic headwinds and significant welfare losses. While the proposed compensation and reinvestment plans of the government brought positive welfare gains and undid many economic headwinds, it was not the optimal policy pathway in terms of resource allocation. Our result showed that a balanced allocation of resources between compensation and reinvestment that implements three-quarters of the total expenditure in 2024 and the remaining one-quarter in 2025 offered better outcomes. We recommend practical measures to implement the proposed plan to minimize fallouts and maximize economic, social, and environmental gains.

Retail Buyer and Manufacturer Influence

Retailers often employ professionals known as retail buyers to determine the right quantities of products to order. However, in many economies and industries, a manufacturer may seek to unduly influence the buyer through various means. One such means is to offer the buyer kickbacks (incl. entertainment, travel, gifts) in return for a large order. Despite prominent examples of retailers taking initiatives against kickbacks, the practice persists in many economies and industries. To aid initiatives combating kickbacks, one needs to do the right diagnosis and identify the root cause. To this end, in this paper, we introduce the retail buyer as a distinct player in the retail channel and study the implications of the tug-of-war between the retailer and the manufacturer to influence the buyer. Interestingly, we find when kickbacks are feasible, the manufacturer need not always benefit, and the retailer need not always be the victim. We show a well-designed buyer compensation plan is key for the retailer to avoid kickbacks from distorting the buyer’s demand assessments. Moreover, when the reputational harm from kickbacks is not too high, the retailer may be the one tacitly facilitating kickbacks by undercompensating the buyer and influencing her demand assessments such that it can leverage kickbacks for shifting some of its buyer compensation cost to the manufacturer. This sharing of cost may allow for better channel coordination. Furthermore, this cost-shifting mechanism of kickbacks we have identified in this paper can explain their persistence. No retailer tolerates kickbacks when the reputational harm is high. This paper was accepted by Eric Anderson, marketing. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2021.01646 .

Importance of Diversity, Equity, and Inclusion in the Hepatopancreatobiliary Workforce.

Diversity is a catalyst for progress that prevents institutional stagnation and, by extension, averts descent to mediocrity. This review focuses on the available data concerning hepatopancreatobiliary (HPB) surgical workforce demographics and identifies evidence-based strategies that may enhance justice, equity, diversity, and inclusion for HPB surgeons and their patients. We report that the current United States HPB surgical workforce does not reflect the population it serves. We review data describing disparity-perpetuating hurdles confronting physicians from minority groups underrepresented in medicine at each stage of training. We further examine evidence showing widespread racial and socioeconomic disparities in HPB surgical care and review the effects of workforce diversity and physician-patient demographic concordance on healthcare outcomes. Evidence-based mitigators of structural racism and segregation are reviewed, including tailored interventions that can address social determinants of health toward the achievement of true excellence in HPB surgical care. Lastly, select evidence-based data driving surgical workforce solutions are reviewed, including intentional compensation plans, mentorship, and sponsorship.

O efeito moderador do narcisismo do CEO na sensibilidade da remuneração ao desempenho

ABSTRACT This study aims to examine whether the Chief Executive Officer (CEO) narcissism has a moderating effect on pay-performance sensitivity. We fill a gap in the existing literature, which overlooks the behavioral aspects of agents in the design of executive compensation plans, by providing evidence of the moderating effect of CEO narcissism on pay-performance sensitivity. We shed light on the fact that shareholders and potential investors might face higher agency costs when investing in firms led by narcissistic CEOs, considering that narcissistic CEOs tend to receive higher levels of compensation than their peers, regardless of the company’s performance. This study also has implications for board members and recruiters, who may take this psychological aspect into account when proposing compensation schemes to CEOs. The results extend the prior discussion on low pay-performance sensitivity (or its non-significance) by suggesting that this might be partially attributed to the psychological characteristics of CEOs, which play a role in the design of executive compensation. A sample of 1,057 non-financial U.S. firms (8,869 firm-year observations) during the period 2002-2018 was analyzed using system generalized method of moments (GMM-SYS) regressions due to the endogenous relationship between CEO compensation and firm performance. The main results show that CEO narcissism reduces the association between CEO compensation and firm performance, supporting the prediction that narcissism can be viewed as a “dark side” in the design of executive compensation plans. This finding is robust to alternative measures of pay-performance sensitivity, and further robustness checks indicate that our results are not driven by CEO overconfidence. Therefore, this study contributes to the literature by providing, to the best of our knowledge, the first empirical evidence of the moderating effect of CEO narcissism on pay-performance sensitivity.

Amplifying adolescent and emerging adult voices: Development of a pediatric-to-adult transition research advisory council

BackgroundAdolescents and emerging adults (AEA) with chronic health conditions may face numerous challenges when undergoing the transition from pediatric to adult health care. Despite the need for engagement with AEA in health research, little is known about how researchers operationalize this engagement. In an effort to enhance transparency in the practices of patient engagement, this commentary details the process of developing a pediatric-adult transition-specific youth advisory council in Alberta: the Transition Research Advisory Council (TRAC). ObjectivesWe provide an overview of AEA engagement in health research and detail TRAC’s recruitment and onboarding strategies. Moreover, TRAC members provided reflections on their motivations and experiences during the onboarding process. Key recommendationsThis commentary provides key recommendations for AEA council development, emphasizing equity, diversity, and inclusion principles, optimizing compensation plans, adopting an iterative engagement approach, fostering capacity-building and mentorship, and promoting empowerment in decision-making.