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.

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.

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.

Pengaruh Pengendalian Intern, Kepatuhan Dan Kompensasi Manajemen Terhadap Perilaku Etis Karyawan Pada LPD Karangasem Bali

This research takes as its object the Village Credit Institution (LPD) in Karangasem. The aim is to test the influence of internal control, compliance and management compensation on employee ethical behavior using grand theory. Stewardship (Daviset al, 1997).Quantitative Multiple Regression Research Method with a sample of 108 and data analysis using SPSS Version 24.Research Results (1) Internal Control (X1) has a positive and significant effect on the Ethical Behavior of Village Credit Institution Employees in Karangasem Bali, (2) Compliance (X2) has a positive and significant effect on the Ethical Behavior of Village Credit Institution Employees in Karangasem Bali, (3) Management Compensation (X3) has a positive and significant influence on the Ethical Behavior of Village Credit Institution Employees in Karangasem Bali, (4) Employee Ethical Behavior (Y) has a positive and significant influence simultaneously on Internal Control, Compliance, Management Compensation so that it becomes one unit in the Village Credit Institution in Karangasem Bali Research Implications This research found that the influence of the variables Internal Control, Compliance, Management Compensation on the Ethical Behavior of Village Credit Institution Employees in Karangasem is very large

Labor Management Practices of Selected Construction Contractors in Nepal

The objective of this study is to assess the labor management practices in Class 'A' construction contractors of Nepal. By identifying the challenges and exploring possible remedial measures, the study aims to contribute to the improvement of labor management practices in the industry. The paper is based on primary data and descriptive research design. The findings of the study shed light on several aspects of labor management practices. It was observed that hiring trained and experienced workers was a common practice. However, issues related to poor communication and planning were identified. The study also revealed significant challenges such as inadequate wages, a lack of occupational health and safety measures, an absence of comprehensive labor policies, unfair hearing practices, and insufficient training opportunities. Based on the study's findings, it is recommended that contractors prioritize to employee staffing, performance evaluation, work environment improvement, training initiatives, and compensation management. Addressing these areas can significantly enhance labor management practices.

Spatial-Temporal Evolution of Agricultural Carbon Balance at Township Scale and Carbon Compensation Zoning: A Case Study of Guangshui City, Hubei Province

Optimizing agricultural carbon compensation zoning is crucial for establishing robust mechanisms in agricultural carbon compensation management, with significant implications for achieving national “dual carbon” strategic objectives. This study employs K-means and the three-dimensional magic cube approach to construct a novel evaluation index system for comprehensive carbon compensation zoning. By combining spatial land-use zoning, we delineate carbon compensation zones in Guangshui City, Hubei Province, and analyze the spatiotemporal variations of agricultural carbon balance, proposing optimization strategies. The results show that (1) from 2000 to 2021, agricultural carbon emissions and absorption exhibit a trend of increasing followed by decreasing, with spatial patterns of “higher in the northwest, lower in the southeast” and “higher in the southwest, lower in the northeast”; (2) the Gini coefficient of agricultural carbon emissions averages at 0.24, with economic contribution coefficients and ecological carrying coefficients ranging from 0.04–16.1 and 0.39–1.99, respectively, from 2000 to 2021; and (3) in 2021, Guangshui City comprises seven payment zones, four balance zones, and six compensation zones, ultimately forming eight optimized agricultural carbon compensation zones in alignment with regional agricultural carbon balance objectives. This study provides theoretical references for enhancing county-level agricultural carbon comprehensive compensation management mechanisms.