Executive Pay. Some evidence suggests that there is a direct and positive relationship between a firm’s size and its top-level managers’ compensation. Explain what inducement you think that relationship provides to upper-level executives. I believe that top-level managers generally are compensated based on the size of the firm because of the risk‚ education‚ stress‚ hard work‚ and expected level of achievement that their job duties require. The top-level managers are expected to take a risk
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Executive Pay Executive pay‚ a bonus to a paycheck for CEOs of a company‚ only provides direct benefits to the owner instead of the occupants working for the boss. This is form of compensation is‚ however‚ beneficial to the company as a whole. With the CEO receiving a high salary‚ they will ultimately have more money to pay their employees more and even possibly be able to hire more people which really aids in the dwindling current economy. This however does provide some positive and some unfortunate
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THE RELATIONSHIP BETWEEN EXECUTIVE COMPENSATION AND FIRM PERFORMANCE IN KENYAN BANKING INDUSTRY Dr. Josiah Aduda‚ jaduda@uonbi.ac.ke‚ Lecturer and chairman‚ department of Finance and Accounting‚ School of Business‚ University of Nairobi‚ Kenya and Leonard Musyoka‚ University of Nairobi Abstract Economic theory of executive pay has focused on the design of optimal compensation schemes to align the interests of hired managers and shareholders. Agency theory has identified several
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Should the top executives of the major banks that received bail-out money be allowed to receive large bonuses? My first response to this question is “Maybe?” I personally believe that I can make a convincing argument for why bank executives should have got large bonus’s and just as equally a convincing argument as why they should not have. I must start by saying the government should not have been allowed to give out exurbanite sums of tax payer dollars to these banks to begin with. Whether
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Executive Pay: Who should decide? In a recent editorial in the Seattle Times‚ the editors complained that the executives of a public company‚ Simon Property Group‚ should have their salaries determined by the shareholders. Among the many things wrong with this piece is first‚ how do shareholders know anything about the performance of the executives in question? They don’t. They don’t work beside them on any kind of basis. They do not know what kind of challenges the company faced and whether the
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Bates‚ S. (2003). Top pay for top performance. HR Magazine. Berglas‚ S. (2006). How to keep A players productive. Harvard Business Review. 1. Bates argues that in order to keep top performers satisfied and productive‚ there should be a substantial difference in the variable pay or merit-based salary increases that top performers and poor performers receive. Based on the available research (which is mentioned in the article)‚ how big of an increase is needed to “catch anybody’s attention”?
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Top Executive Compensation Packages In the job market‚ while employees select their employers‚ employers also select their employees. One of the most important elements that employers might take into consideration is salary. Executive salary could be classified into two groups: the short-term salary and the long-term salary. Short-term salary mainly includes wage‚ insurance‚ welfare and bonuses. Stock incentive is one of the modern long-term salary types and the incentive system is used to solve
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Optimal Size Of A Firm The optimum size of a firm is a very subjective idea. The ways in which size can help or hinder a firm vary from which angle you a looking at the situation from. Size can have its benefits and its drawbacks‚ and each firm will have its own benefits and drawbacks that come from either increasing in size‚ or remaining small‚ and these will depend on the market in which the firm is in‚ the current economy‚ and in some cases the preferences of the manager(s). For example a
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Opening the Black Box of the Relationship Between HRM and Firm Performance Stockholm School of Economics in Russia Working Paper #07 - 101 OPENING THE BLACK BOX OF THE RELATIONSHIP BETWEEN HRM PRACTICES AND FIRM PERFORMANCE: A COMPARISON OF USA‚ FINLAND‚ AND RUSSIA CARL F. FEY Institute of International Business Stockholm School of Economics S-11383 Stockholm‚ Sweden Tel: (46-8)-736-9501 Fax: (46-8)-31-9927 Carl.Fey@hhs.se and Stockholm School of Economics Russia SERGEY MORGOULIS-JAKOUSHEV Stockholm
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An executive summary for managers and executives can be found at the end of this article Green marketing of cosmetics and toiletries in Thailand Lalit M. Johri Associate Professor at the School of Management‚ Asian Institute of Technology‚ Klong Luang‚ Pathumthani‚ Thailand Kanokthip Sahasakmontri Retail Network Strategic Planning Assistant‚ Shell Companies in Thailand‚ Klongtoey‚ Bangkok‚ Thailand Introduction The green marketing of products and services is an important development in
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