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Article
Publication date: 7 July 2022

Rishi Kappal and Dharmesh K. Mishra

This paper aims to explore the interlinkage and association of executive isolation at the workplace faced by Chief Executive Officer (CEO) of a not-for-profit organizations (NPOs…

Abstract

Purpose

This paper aims to explore the interlinkage and association of executive isolation at the workplace faced by Chief Executive Officer (CEO) of a not-for-profit organizations (NPOs) and its impact on the attrition at the C-Suite Professionals (CXO), Direct reports of CEO levels.

Design/methodology/approach

Executive isolation at top management with reference to the CEO level has emerged as a major challenge that is faced by NPOs with the effect being multiplied by the pandemic and remote working. This paper intends to examine the relevance of the impact of executive isolation experienced by top management leading to increase in the attrition at the CXO levels in NPOs due to their increasing dissatisfaction. To make a thorough study, a detailed literature review has been done followed by qualitative research methods of individual interviews, group interviews and surveys to ascertain the implications of CXO-level executive isolation on the CXOs attrition in NPOs.

Findings

The executive isolation experienced by CEOs makes them develop certain preconceived set of beliefs. By being isolated from the direct report CXOs and action on the ground and working from a remote location, they tend to inculcate their own decisions into the direct reports, thereby depriving them of authority and autonomy. This starts leading to the high level of CXO attrition.

Research limitations/implications

This paper has tried to study the linkage of the executive isolation at top management with the levels of CXO dissatisfaction leading to attrition at NPOs. This topic appears to be much-needed to be understood, especially when the new normal of work is being redefined.

Practical implications

The paper enumerates that the NPOs can attempt to deal with the challenges of engaging CXOs through virtual working; however, the mindfulness can be impacted by the experiences of executive isolation at management levels. This, in turn, can lead to lower morale, compromised performance resulting in CXO-level dissatisfaction and attritions.

Originality/value

With the limited awareness about executive isolation and its multiplier effect due to the pandemic, NPOs, like other enterprises, had to resort to virtual working. However, executive isolation at management levels apparently leads to reduction in the CXO-level engagement with the teams under them and with the CEO to which they report. This aspect can lead to the NPOs not being able to achieve their impact objectives during the outward turbulence and inward challenges of CXO-level attritions because of the CXO-level dissatisfaction.

Details

International Journal of Organizational Analysis, vol. 31 no. 7
Type: Research Article
ISSN: 1934-8835

Keywords

Open Access
Article
Publication date: 5 April 2023

Ritu Pareek and Tarak Nath Sahu

Taking cues from the fact that there remains a dearth in the establishment of theoretical and empirical relationship between executive compensation and corporate social…

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Abstract

Purpose

Taking cues from the fact that there remains a dearth in the establishment of theoretical and empirical relationship between executive compensation and corporate social responsibility (CSR) performance of the firms, this study attempts to explore the non-linear relationship between the said variables.

Design/methodology/approach

The study utilizes a strongly balanced panel data set of 179 non-financial National Stock Exchange (NSE) 500 listed firms for the study period of 2015–2020. The study further employs both static as well as Arellano-Bond dynamic panel model under generalized method of moments (GMM) framework to establish the relationship between executive compensation and CSR performance of the sampled firms.

Findings

The study acknowledges an inverted U-shaped relationship between executive compensation and environmental, social and governance (ESG) score of the firms. According to the robust estimator, an increase in the level of executive compensation is said to affect CSR performance positively until it surpasses a threshold level of 18.7 percent.

Practical implications

One of the major takeaways that the study provides for the corporate policymakers is that the level of compensation can only motivate the executives to take up socially responsible work up to a certain level surpassing which the executives becomes resistant towards any benefits provided by the CSR performance and get inclined towards economical performances of the firm. At the later stage, the economical expansionary investment benefits overweigh the personal career benefit gained by the executives from the CSR performances of the firm.

Originality/value

The nonlinearity relationship between executive compensation and CSR performance and the threshold level providing the two-fold effect of compensation on the CSR performance of the firms attempted by this study is a rare attempt in an emerging economy like India.

Article
Publication date: 21 March 2024

Rishi Kappal and Dharmesh K. Mishra

Executive isolation, also known as workplace loneliness, its factors and impact are major issues for organizational development, future of work for leadership and learning…

Abstract

Purpose

Executive isolation, also known as workplace loneliness, its factors and impact are major issues for organizational development, future of work for leadership and learning culture. The purpose of this study is to examine the Executive isolation phenomenon where relationships between power distance, organizational culture and executive isolation of Chief Executive Officers (CEOs) are analysed on how it is considered by their teams. The same is contextualized through the inputs received through interviews conducted with CEOs and employee surveys.

Design/methodology/approach

The qualitative in-depth interviews of five CEOs, and survey across 34 of the 50 employees, were undertaken over the course of two phases of this study. The investigation focused on identifying executive isolation of CEOs and perspectives of employees that can impact the leadership and learning progress of organizations based on work culture, power distance and decision-making; awareness and experience of executive isolation; workplace friendliness and rejection; and management development initiatives to minimize the impact of executive isolation. Qualitative data analysis was conducted using MAXQDA 2022 (Verbi Software, Berlin, Germany), which is a qualitative data analysis software.

Findings

The findings highlight and expose the significant gap between understanding and analysing of the factors due to which the CEOs undergo executive isolation. It also extends to providing details related to the lack of awareness of the teams’ actions contributing to the CEOs’ isolation. It further highlights the fact that the difference of perspectives between the CEOs and teams leads to the organization slowing in its learning activities due to the leaders’ own challenges of executive isolation The findings also provide immense need of developing knowledge assets and management development initiatives for learning interventions, to help understand, analyse and mitigate executive isolation, in the interest of the organizational learning and development.

Originality/value

Earlier research work have contextualized the executive isolation impact on CEOs ability to be a leader. This study extends it to include the implications of leadership and learning culture on the teams that are affected by organization culture, power distance, decision-making and analysing the gap between the understandings about executive isolation of the CEOs. Eventually, it interprets how CEOs courting the executive isolation impacts the overall developmental culture of the organization. This will help in asserting the serious need of new learning frameworks needed to minimize the impact of CEO-level executive isolation.

Details

The Learning Organization, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-6474

Keywords

Article
Publication date: 14 March 2023

Arifur Khan, Sutharson Kanapathippillai and Steven Dellaportas

The purpose of this study is threefold: to examine the impact of a remuneration committee (RC) on the level of chief executive officer (CEO) remuneration; whether firms with a RC…

Abstract

Purpose

The purpose of this study is threefold: to examine the impact of a remuneration committee (RC) on the level of chief executive officer (CEO) remuneration; whether firms with a RC, pay a premium to CEOs with different skill sets (general or specific); and whether a pay premium mitigates the potential for CEO turnover.

Design/methodology/approach

This study uses a sample of 5,305 firm-year observations on a data set drawn from companies listed on the Australian Securities Exchange for the period 2007 to 2014. The authors use ordinary least squares as well as logit regression techniques to test the formulated hypotheses. Difference in difference and propensity score matching techniques were undertaken to address the endogeneity concerns.

Findings

The findings show that firms with a RC pay a higher total remuneration to CEOs compared to firms without a RC. Furthermore, firms with a RC, value and reward CEOs with general skills by paying a premium not offered to CEOs with industry-specific skills. Paying a premium, in turn, mitigates CEO turnover by strengthening the CEO’s commitment to the organisation.

Originality/value

The study helps us to understand the critical role played by the RC in the remuneration of CEOs. The findings show that RCs act as an effective governance mechanism to deal with issues of executive remuneration and to retain skilled CEOs. Additionally, CEOs who acquire and develop general managerial skills will be able to extract higher pay from improved bargaining power. The findings will be of relevance to shareholders, regulators and company management who have an interest in executive pay and performance.

Details

Meditari Accountancy Research, vol. 32 no. 2
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 6 February 2024

Ning Xu, Di Zhang, Yutong Li and Yingjie Bai

Green technology innovation is the organic combination of green development and innovation driven. It is also a powerful guarantee for shaping sustainable competitive advantages…

Abstract

Purpose

Green technology innovation is the organic combination of green development and innovation driven. It is also a powerful guarantee for shaping sustainable competitive advantages of manufacturing enterprises. To explore what kind of executive incentive contracts can truly stimulate green technology innovation, this study aims to distinguish the equity incentive and reputation incentive, upon their contractual elements characteristics and green governance effects, and then put forward suggestions for green technology innovation accordingly.

Design/methodology/approach

This study establishes an evaluation model and uses empirical methods to test. Concretely, using data from A-share listed manufacturing companies for the period from 2007 to 2020, this study compares and analyzes the impact of equity and reputation incentive on green technology innovation and explores the relationship between internal green business behavior and external green in depth.

Findings

This study finds that reputation incentives focus on long-term and non-utilitarian orientation, which can promote green technology innovation in enterprises. While equity incentives, linked to performance indicators, have a inhibitory effect on green technology innovation. Internal and external institutional factors such as energy conservation measures, the “three wastes” management system, and environmental recognition play the regulatory role in the relationship between incentive contracts and green technology innovation.

Originality/value

Those findings validate and expand the efficient contracting hypothesis and the rent extraction hypothesis from the perspective of green technology innovation and provide useful implications for the design of green governance systems in manufacturing enterprises.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Open Access
Article
Publication date: 11 April 2024

Jiali Fang, Yining Tian and Yuanyuan Hu

The purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent…

Abstract

Purpose

The purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent firms.

Design/methodology/approach

We conduct regression analyses using a sample of firms listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2020 to examine whether CSR performance is similar from one firm to the next as executives switch jobs.

Findings

We find a positive relationship between the CSR performance of former and subsequent firms under job-hopping executives. This relationship is the strongest in the year of the job switch; it weakens in the second year and eventually disappears in the third year. In addition, we show that this relationship benefits different CSR stakeholder groups and is contingent on executive and subsequent firm attributes and job-hopping characteristics. Furthermore, we demonstrate that firms that hire a new chief executive officer from a firm with a strong track record in CSR, the new firm experiences a significant surge in CSR performance compared with firms that do not experience such a shock.

Practical implications

This study has implications for executive hiring decisions.

Originality/value

This study extends the understanding of CSR determinants through the lens of inter-organisational ties associated with job-hopping executives.

Details

China Accounting and Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1029-807X

Keywords

Article
Publication date: 28 September 2023

Chenhao Li, Huanan Sun and Qian Zhang

The purpose of this study is to explain the following questions: First, whether the executive equity incentive has an impact on enterprise innovation and digital transformation;…

Abstract

Purpose

The purpose of this study is to explain the following questions: First, whether the executive equity incentive has an impact on enterprise innovation and digital transformation; Second, if there is any influence, whether there is difference between state-owned enterprises and private enterprises in the research conclusions; Third, whether the digital transformation of enterprises has had an intermediary effect between executive equity incentive and enterprise innovation; Fourth, whether the proportion of independent directors in the corporate governance mechanism has a regulatory effect.

Design/methodology/approach

In the context of China's promotion of “digital China” construction and high-quality development of economic innovation, this paper takes Shanghai and Shenzhen A-share listed companies in 2011–2019 as a sample, empirically studies the linear and nonlinear relationship between executive equity incentive and enterprise digital transformation and innovation, and further considers the regulatory effect of heterogeneous property rights and the proportion of independent directors, with a view to improving the reform of China's enterprise equity incentive system make contributions to enterprise innovation and digital transformation.

Findings

The results show that executive equity incentive has a positive role in promoting enterprise digital transformation and innovation, and enterprise digital transformation has a positive role in promoting enterprise innovation; Digital transformation of enterprises has a partial intermediary effect between executive equity incentive and enterprise innovation.

Originality/value

First, it expands the research on the economic consequences of enterprise salary incentive system. Second, it expands the research on the specific role path of enterprise digital economy transformation. Third, provide new ideas for the reform of corporate governance mechanism.

Details

Kybernetes, vol. 53 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 13 November 2023

Fang Yuan, Fang Lee Cooke, Xiaozhen Fang, Fansuo An and Yiming He

Despite the growing research interest in gender diversity, the presence of female executives and organizational outcomes, the relationship between female executives and employment…

Abstract

Purpose

Despite the growing research interest in gender diversity, the presence of female executives and organizational outcomes, the relationship between female executives and employment relations outcomes remains under-researched. This study aims to examine the potential relationship between female executives and employment relations outcomes, with the gender gap as a focus.

Design/methodology/approach

A cross-sectional survey was used to collect data from 2,682 workers from 119 manufacturing firms in Guangdong Province, southern China.

Findings

Results show that firms with female executives are more likely to comply with labor laws and promote staff development. The association between female executives and promotion opportunities is stronger for female employees than for male employees. However, there is no significant association between female executives and employee salaries.

Originality/value

This research contributes to employment relations literature and extends the application of social role theory to studies of employment relations in particular societal contexts. This study also provides possible boundary conditions for the existence of queen bee behavior by using data from Chinese factories.

Details

Employee Relations: The International Journal, vol. 46 no. 1
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 4 July 2023

Sangyong Han and Hyejeong Mun

This study investigates the relationship between outside directors, managerial compensation, and firm performance in the Korean insurance industry.

Abstract

Purpose

This study investigates the relationship between outside directors, managerial compensation, and firm performance in the Korean insurance industry.

Design/methodology/approach

The authors employ a simultaneous equation framework by using three-stage least squares (3SLS) to address the endogeneity problems that could result from the joint determination of outside directors, firm performance, and executive compensation in Korean insurance companies.

Findings

The authors find that the ratio of outside directors on the board is negatively associated with insurance firm's value and financial profitability. In addition, this study's evidence shows that greater representation on the board by outside directors leads to a higher level of executive pay. In particular, the authors provide evidence that variable compensation scheme and outside directors who have backgrounds in the legal profession and former high-ranking government officials drive this study's main results.

Originality/value

This study adds to the literature by first demonstrating the interaction effects between outside directors, firm performance, and executive compensation in the Korean insurance industry. Unlike previous studies that typically focus on US companies, the authors study the Korean insurance sector that is an emerging power in the global insurance market, ranking seventh in terms of total premium volume, and show that the Korean insurance firm's outside directors system does not work in the manner that it is intended to function.

Details

Managerial Finance, vol. 49 no. 12
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 20 June 2023

Madhur Bhatia and Rachita Gulati

The purpose of the paper is to explore the long-run impact of board governance and bank performance on executive remuneration. More specifically, the study addresses two…

Abstract

Purpose

The purpose of the paper is to explore the long-run impact of board governance and bank performance on executive remuneration. More specifically, the study addresses two objectives. First, the authors investigate the long-run relationship between pay and performance hold for the Indian banking industry. Second, the authors explore the moderating role of the board in explaining the relationship between executive pay and performance.

Design/methodology/approach

The study uses multivariate panel co-integration approaches, i.e. fully modified and dynamic ordinary least square, to explain the co-integrating relationship between executive pay, governance and performance of Indian banks. The analysis is conducted for the period from 2005 to 2018.

Findings

The results of co-integration tests reveal a long-run relationship between executive pay, board governance and bank performance. The long-run estimates produce evidence in favour of the dynamic agency theory, suggesting that the implications of asymmetric information can be mitigated by associating the current executive pay with the bank performance in the previous periods. The finding of this study reveals that improvements in the board quality serve as a monitoring tool to constrain excessive pay and moderate the executives’ pay. Furthermore, the interaction of performance and board governance negatively impacts pay, supporting a substitution approach. It implies that setting optimal pay packages for executives necessitates enhanced and efficient board governance practices.

Practical implications

The study recommends significant policy implications for regulators and the board of directors that executive pay significantly responds to the bank’s performance and good board governance practices in the long run.

Originality/value

This paper provides novel evidence of long-run pay-performance-governance relation using a panel co-integration approach.

Details

Corporate Governance: The International Journal of Business in Society, vol. 24 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

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