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The present paper aims to question the rationale of paying a high remuneration to executives who are presiding over loss-making companies. The neoclassical wage model asserts that the remuneration of executive directors is positively related to their company’s financial performance. However, evidence suggests that executives can obtain a higher level of personal compensation regardless of how the company performs.

The relationship between executive remuneration and performance for viable but loss-making Bombay Stock Exchange (BSE)-listed companies has been studied for 2009-2011. The paper examines the determinants of the level of executive remuneration as well as discerns the strength of the remuneration–performance relationship, both at the overall and across various board hierarchical levels, using the JM sensitivity and HL elasticity models.

Results for univariate and multivariate analyses highlight that both the remuneration–performance sensitivity and elasticity are weak. Further, factors such as ownership structure, risk and industry class moderate the remuneration–performance elasticity. It seems that it is only the lower rung of executive directors whose cash remuneration gets adversely affected with the performance of the company.

The paper offers valuable insight into the complexities relating to the remuneration performance relationship by putting forth a multi-theoretical perspective. The fact that executives are drawing a whopping remuneration while their companies continue to report disappointing results suggests that a catalytic role has to be played by the government so as to ensure that executive remuneration policies and practices are consistent with the company’s long-term objectives and control environment.

This book is a policy proposal aimed at the democratic left. It is concerned with gradual but radical reform of the socio‐economic system. An integrated policy of industrial and economic democracy, which centres around the establishment of a new sector of employee‐controlled enterprises, is presented. The proposal would retain the mix‐ed economy, but transform it into a much better “mixture”, with increased employee‐power in all sectors. While there is much of enduring value in our liberal western way of life, gross inequalities of wealth and power persist in our society.

From the perspective of top management heterogeneity, this paper aims to study the impact of the psychological traits of executive pay bandwagon on earnings management in the listed companies of China.

This paper applies the ratio of executive pay to the median pay level of executives in firms of similar size and industry, namely, the comparing coefficient, as an alternative variable of executive pay bandwagon, and earnings management as the behavior choice of executive pay bandwagon, to examine whether executives in the listed companies of China have comparing mentality, and whether the result is influenced by executive heterogeneity by using the multiple linear regression models.

The lower the executives’ compensation is than the median pay level of executives in firms of similar size and industry, the stronger the incentive the executives have to compare with others whose pay is higher, increasing the extent of earnings management in the future, and executives tend to use real activities manipulation rather than accrual-based earnings management to increase their performance-based compensation. As pay bandwagon is a kind of executives’ individual psychological reaction, in a large extent, its behavioral performance is likely to be affected by executive heterogeneity. Specifically, when the proportion of male executives, young executives or low educated executives is relatively high, or executives are located in remote cities, there will breed more earnings management behaviors induced by pay bandwagon. Further study shows that pay bandwagon is positively correlated with rigging compensation based on real earnings management and pay bandwagon also has significantly negative effects on the firms’ future value creation.

Pay bandwagon is an important inducement of executives’ earnings management, with implication that for executives with different characteristics, one should pay attention to the subjective psychological perception and expectation of their pay in the future studies related to executives’ compensation incentives.

This study introduces the research within sociology, psychology and experimental economics, and considers the executives’ subjective perception of their pay, to explore the internal mechanism that executives affect firm performance via a specific earnings management method and to implement self-interested behavior due to pay bandwagon. And this is the first study to select several typical executive individual characteristics to investigate the influence of executive heterogeneity on pay bandwagon and its economic consequences.

Despite the fact that customer orientation is increasingly used as a strategic guideline to ensure companies’ long-term success, it is too often left at conceptual level without any managerial or executive translation. To address this practical gap, the purpose of the paper is to build an executive perspective on customer orientation through the mechanism of customer value dimensions.

An intensive case study from a successful retail service business is used to illustrate how customer orientation is applied in actual strategic decision making at the executive level. The case business is a multi-sector service business that took a strategic turn toward customer orientation in the 2000s. As a result, the company has been able to increase their market share to become the market leader as well as stay ahead of the competition and increase customer loyalty.

The study provides a practical tool of disentangling customer orientation into four customer value dimensions and linking them with appropriate executive level strategic decision making.

The study helps executives uncover the inner meaning of customer orientation, move beyond traditional conceptualization of customer orientation, and adopt customer value orientation. This necessitates not only understanding customer value criteria, but also linking the diverse criteria to executive level strategic decision making.

The study concretizes and uncovers how customer orientation can be implemented by incorporating both economic, functional, emotional, and symbolic customer value dimensions into executive level strategic decision making.

The purpose of this paper is to present the results of the research in the sphere of education and preparation of Russian executives in view of mentality and elements of national model of management.

The research consisted in analysis of modern developments in the sphere of HR management in socio-economic systems. The authors used the materials on structuring and classification of managerial activities from various points of view. The research is based on recent tendencies in the sphere of application of intensive educational technologies.

Ten levels of managerial activities were distinguished on the basis of the performed research. Each of these levels is a new step of qualitative significance and complication of managerial activities. In order to achieve new and higher levels of professionalism, a model of professional development of executives was created, which consists of several blocks, which stimulates obtaining the knowledge and acquisition of certain skills in this sphere. The structure of problem and situational game “Professionalism of executives” and methodology of evaluation of activities of game participants are given.

Using game modeling for determination of the level of professional activities will allow evaluating specialists, in particular, executives, and determine qualitative evaluation of the level of their competence in various aspects of their activities.

The research possesses a value for lecturers, managers, and consultants of educational establishments who perform training, additional training, and development of professional competence of executive in organizations of any profile in view of national mentality.

The purpose of this paper is to examine the influence of organizational level on employees' perceptions and reactions to a complex organizational change involving proposed work force redesign, downsizing and a physical move to a new hospital.

Participants included executives, supervisory and non‐supervisory staff in a major tertiary hospital. Recorded in‐depth interviews were conducted with 61 employees about the positive and negative aspects of the change.

A total of 12 themes were identified from content coding, including emotional responses and attitudes toward the change, issues about the management of the change process and about change outcomes. Supervisory and non‐supervisory staff referred more to conflict and divisions, and expressed more negative attitudes toward the change, than did executives. Executives and supervisory staff focused more on planning challenges and potential outcomes of the change than did non‐supervisory staff. Finally, compared to other staff, executives focused more on participation in the change process and communication about the change process.

This study examines the organizational change at only one time point in one organization. Perceptions of the change may change over time, and other identities like professional identity may influence perceptions.

These findings suggest that change agents should consider the needs of different organizational groups in order to achieve effective and successful organizational change.

This study clearly shows the impact of organizational level, identifying similarities and differences in perceptions of change across level.

The purpose of this paper is to empirically examine the impact of the utilization of organizational practices on the career progression of women to executive positions in state‐level government organizations in the USA.

The design included an online survey instrument sent to a purposive sample of 600 female administrative agency executives in 50 states. A standard multilinear regression model tests the predictive power of three composite explanatory utilization variables on the dependent variable, career progression of women to upper level management. The composite predictor variables are: utilization of work/family practices; utilization of diversity practices; and utilization of promotional practices.

Contrary to expectations, the relationship between career progression of women and family‐friendly utilization does not appear to be statistically significant. However, the time it takes respondents who utilized family‐friendly practices in their organizations to reach upper‐level management decreased by 0.037 years. And contrary to expectations, women who utilize promotion practices are more likely to achieve executive‐level status, even though it does not necessarily take them less time to do so.

This research is distinct from previous studies in that it considers the relationship between the utilization of practices and women's attainment of executive‐level positions.

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.

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.

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.

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.

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.

This paper aims to study the impact of audit quality on the components of executive cash compensation. It is predicted that as audit quality improves, greater emphasis will be placed on the incentive components of cash compensation, and lower emphasis on the salary (fixed) component. Specifically, it is predicted that as audit quality enhances, greater emphasis will be placed on earnings and sales revenues in determining executive cash compensation. Using auditor specialization as a proxy for audit quality, empirical support is provided for all of our predictions.

This paper provides empirical support with agency theoretic predictions.

This paper developed the following hypotheses: H1 – in executive cash compensation, more weight is being placed on earnings-based measures as auditor specialization improves; H2 – in executive cash compensation, more weight is also being placed on sales revenues as auditor specialization improves; H3 – in executive cash compensation, salary levels decrease as auditor specialization improves; and H4 – the impact of auditor specialization on the weight on earnings, sales and the salary levels is lower in the post-Sarbanes–Oxley Act (SOX) period compared to pre-SOX period.

First, the article limits itself to cash compensation, while current executive compensation is largely made of equity. Second, the measure of audit quality used, ‘national level auditor specialization’, may not be as effective in the post-SOX era.

Compensation committees should pay attention to audit quality (in whatever way it may be proxied by) in determining executive compensation.

This is the first paper to show that audit quality not only improves the earnings response coefficient in firm valuation but also enhances the weight placed on earnings (and sales revenues) in executive compensation.

The purpose of this paper is to identify firms in the UK adopting a policy of high cash and low leverage and investigate how executive ownership contributes to this decision.

Firms following this policy are identified both by using a fixed classification approach and the analysis of the distribution of cash and leverage. Logit analysis is then used to estimate the probability of adopting the policy as a function of executive ownership.

Extreme financial policies are suboptimal as firms adopting these policies tend to undershoot (overshoot) their target leverage (cash holdings) ratios. The impact of the executive ownership on the probability of adopting this policy is U-shaped, in line with the alignment–entrenchment hypothesis.

Despite the substantial presence of non-executive directors in the boards and a significant amount of shareholdings by executive directors, the firms under analysis have adopted suboptimal financial policies possibly because poorly governed or because executive ownership is the range where entrenchment is feasible.

This is the first attempt at recognising policies of high cash and low leverage as being explicitly interdependent. It is also the first study focussing on the UK, a country of interest, because ownership structure is relatively dispersed. Moreover, instead of choosing fixed threshold levels of the variable in defining the extreme financial policy, this paper proposes the analysis of the distribution of cash holdings and leverage and accounts for target levels of cash and leverage.