Remuneration Costs Research Articles

Asymmetric Taxation and Performance-Based Incentive Contracts

This paper analyzes the effects of symmetric and asymmetric taxation on performance-based versus fixed remuneration contracts. I integrate a proportional corporation tax and a proportional wage tax into a binary principal-agent model. The wage tax increases the remuneration costs and makes the agent's employment less attractive. Thus, the principal tends to demand lower rather than higher effort or does not offer a contract at all. In contrast to the wage tax, the corporate tax is irrelevant for the optimal remuneration contract. Under asymmetric corporate taxation, the principal tends to offer contracts less frequently. Fixed remuneration contracts are penalized more heavily by asymmetric taxation than performance-based remuneration contracts.

Does accounting regulation enhance corporate governance? Evidence from the disclosure of share-based remuneration

Accounting for stock options and share-based remuneration is a controversial issue. The purpose of this study is to explore the impact of the mandatory adoption of IFRS 2 on accounting for share-based remuneration by Italian listed companies. The requirements under this standard could have relevant implications for corporate governance as IFRS 2 is expected to reduce the information asymmetry that may exist between corporate insiders and outsiders regarding such remuneration. Empirical evidence confirms that overall disclosure in annual reports concerning the costs of remuneration plans has increased following the adoption of IFRS 2, although some cases of lack of disclosure have also been found. We find that this change in accounting regulation has contributed towards revealing the ‘true’ cost of share-based remuneration to minority shareholders and other investors, together with some evidence of creative accounting surrounding the substance over form principle.

СУТНІСТЬ ОБЛІКОВОЇ ПОЛІТИКИ ПІДПРИЄМСТВА ЩОДО ВИТРАТ НА ОПЛАТУ ПРАЦІ ТА ФАКТОРІВ ВПЛИВУ НА ЇЇ ФОРМУВАННЯ

The essence of accounting policy of an enterprise concerning the issues of labor remuneration costs, which integrates all the aspects of accounting process (organizational, methodical and technical), has been disclosed; as well as the factors influencing its formation concerning the labor remuneration costs have been studied and classified.

Staff remuneration costs on the increase

Staff remuneration costs on the increase

Economic burden of amyotrophic lateral sclerosis in the United Kingdom

To assess the economic burden of amyotrophic lateral sclerosis (ALS) in the United Kingdom, yearly direct medical costs were determined for four defined ALS health states (mild, moderate, severe and terminal disease stages). Resource utilisation patterns for each health state were obtained from United Kingdom neurologists and local costs (1996/97) were attached to the resources. The annual direct cost of the health states increased from £1185.20 in mild disease to £3127.51 in the terminal state. Hospitalisation was a major contributor to total cost in mild (43.3%), severe (31.6%) and terminal (45.1%) states. In contrast, in moderate disease the impact of hospitalisation was minimal (0.8%) compared to physician remuneration costs (59%). The economic burden of ALS is therefore directly related to the severity of the disease. The study identifies the major cost drivers in current ALS care and provides a means for determining how potential therapeutic interventions might affect the overall cost of the disease.

Framework for Developing a Total Reward Strategy

Remuneration costs are a significant component of any public or private sector organization's operating budget. However, traditional approaches to remuneration planning and management are under increasing criticism for their failure to meet current economic and business environment. A deliberate and systematically designed remuneration strategy can provide an important tool for supporting and reinforcing the link between the organization's philosophy, values and objectives and employee performance. This paper reviews the current challenges and opportunities promoting change in remuneration practices and provides a framework for developing a total reward strategy. The objective is to define the design and delivery of a reward structure that directly supports the enterprise's business objectives and its cultural values.