Total expenses for managerial remuneration in foreign manufacturing subsidiaries during the COVID-19 pandemic: a pilot exploration of applied policies
ISSN: 0142-5455
Article publication date: 5 July 2022
Issue publication date: 23 September 2022
Abstract
Purpose
This study aimed to reveal the policies applied to determine the total expenses for managerial remuneration in manufacturing subsidiaries during the COVID-19 pandemic.
Design/methodology/approach
The author analyzed the annual financial reports of Russian manufacturing subsidiaries containing data on managerial remuneration and compared the dynamics of annual revenues and the amount of annual managerial remuneration.
Findings
The author identified four types of policies regarding the total amount of managerial remuneration. In a minority of cases, when revenues decreased, the share of the total amount of managerial remuneration in total revenues also decreased. The author also observed “payment for efforts”; although revenues decreased in 2020, the share of the total amount of managerial remuneration in total revenues increased. In 17% of cases, when revenue increased, the share of the total amount of managerial remuneration in revenue also increased. Finally, in 50% of cases, the COVID-19 pandemic served as a pretext to generate savings from the reduction in the total amount of managerial remuneration despite the increase in revenues.
Originality/value
This is the first study to use real financial reports to evaluate the dynamics of the total amount and share of managerial remuneration in revenue during a crisis.
Keywords
Acknowledgements
This work was supported by the grant 2021.003NP.1 of the Graduate School of Management, National Research University Higher School of Economics, Moscow. The author is extremely grateful to Galina Balashova and Alexandre Arshavsky for the technical assistance during the paper preparation.
Citation
Gurkov, I. (2022), "Total expenses for managerial remuneration in foreign manufacturing subsidiaries during the COVID-19 pandemic: a pilot exploration of applied policies", Employee Relations, Vol. 44 No. 6, pp. 1504-1515. https://doi.org/10.1108/ER-01-2022-0016
Publisher
:Emerald Publishing Limited
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