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Article
Publication date: 16 August 2021

Svitlana Tsymbaliuk and Tetiana Shkoda

High European standards of life quality are declared in a set of legislative documents in Ukraine, but the rewarding policy for the healthcare employees because of the coronavirus…

Abstract

Purpose

High European standards of life quality are declared in a set of legislative documents in Ukraine, but the rewarding policy for the healthcare employees because of the coronavirus disease 2019 (COVID-19) disease remains not fully implemented. The purpose of the study is to develop indicators, standards and methods of assessing rewarding policies for healthcare employees in terms of providing decent labour remuneration that are useful for all stakeholders of the healthcare sector in Ukraine.

Design/methodology/approach

The study proposes the methodical foundations of developing evaluation tools of rewarding policies for implementing the decent work concept at the sectoral level.

Findings

The findings identify the complex indicator of decent labour remuneration in the healthcare sector in Ukraine, which is 0.185. It proves that the level of the decent labour remuneration of the healthcare employees in Ukraine is at the low level.

Practical implications

The study provides the important recommendations for all policymakers in the healthcare sector in different countries in the context of diagnosing the problems in the rewarding policies and determining the directions for improvement in terms of implementation of the decent work principles.

Originality/value

By proposing and calculating the main methodical foundations of evaluation tools development of rewarding policies in the context of realisation of the decent work concept at the sectoral level, the study fills a void in the decent labour remuneration and the labour economics theory literature.

Details

Employee Relations: The International Journal, vol. 44 no. 1
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 17 March 2022

Marilee Van Zyl and Nadia Mans-Kemp

Companies around the globe increasingly receive immense shareholder scrutiny due to perceivably excessive executive director remuneration. The debate in South Africa intensifies…

1072

Abstract

Purpose

Companies around the globe increasingly receive immense shareholder scrutiny due to perceivably excessive executive director remuneration. The debate in South Africa intensifies due to severe pay inequality. The authors thus accounted for the perspectives of asset managers and listed financial services companies in South Africa pertaining to the impact of voting and engagement on director pay policies and practices.

Design/methodology/approach

Semi-structured interviews were conducted with selected asset managers, chief executive officers, chief financial officers and remuneration committee members of listed financial services companies to gauge their views on the impact of shareholder activism endeavours on remuneration governance. The qualitative data was analysed by conducting thematic analysis.

Findings

Most of the asset managers and financial services representatives preferred proactive, private engagement on pay concerns, given the impact thereof on voting outcomes, and ultimately director remuneration practices and policies. Independent remuneration committees have a prominent role in facilitating engagements with investors to ensure fair remuneration.

Research limitations/implications

The consequences should be clearer if organisations receive substantial votes against their pay policies and implementation reports. South African regulators can consider the “two-strikes” rule to ensure that action is taken in response to shareholder voting on director remuneration matters.

Originality/value

Representatives of asset managers and listed financial services investee companies offered valuable insights on remuneration governance deliberations in an emerging market. This in-depth analysis highlights the importance of proactive engagement to ensure that corporate leaders are paid fairly.

Article
Publication date: 5 July 2022

Igor Gurkov

This study aimed to reveal the policies applied to determine the total expenses for managerial remuneration in manufacturing subsidiaries during the COVID-19 pandemic.

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.

Details

Employee Relations: The International Journal, vol. 44 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 16 March 2015

Chiara Mio, Andrea Venturelli and Rossella Leopizzi

The purpose of this paper is to examine the relationship between remuneration for the achievement of objectives and sustainability, and – more specifically – the amount of…

4645

Abstract

Purpose

The purpose of this paper is to examine the relationship between remuneration for the achievement of objectives and sustainability, and – more specifically – the amount of attention that listed companies in Italy devote to defining, and consequently to communicating externally, sustainability as a criterion in establishing the wage levels of managers and directors.

Design/methodology/approach

It was decided to ascertain whether the quality of information regarding sustainability provided in connection with the remuneration policies of listed companies tallies with the general quality of information regarding sustainability provided through companies’ main (obligatory and voluntary) reporting procedures.

Findings

The results of this research show that the inconsistency between the information provided in voluntary and obligatory reports (between reports on sustainability and remuneration reports) extends to the levels of information provided in the two types of obligatory report (the reports on remuneration and on management); there is also a discrepancy between the levels of information provided in these reports and the evaluation of that information by an external assessor.

Research limitations/implications

One of the limitations of this research is that as the data examined were gleaned from public documents, it is not necessarily an accurate reflection of all the information that firms have at their disposal on questions of sustainability and remuneration policies. The existence of internal documents containing other information, and therefore leading to different results, cannot be ruled out.

Originality/value

This study is the first in Italy to examine the question of how limited companies report issues relating to management by objectives-corporate social responsibility. It does this through the introduction of a mixed system for ESG information, which counteracts the subjective limitations of the internal evaluation provided by the research group by adding in the authoritative evaluations of an external assessor.

Article
Publication date: 9 November 2015

Ernestine Ndzi

The purpose of this paper is to investigate the factors that remuneration consultants consider when selecting comparator groups for executive remuneration benchmarking. It…

781

Abstract

Purpose

The purpose of this paper is to investigate the factors that remuneration consultants consider when selecting comparator groups for executive remuneration benchmarking. It explores how the different factors influence the level of pay and whether the factors encourage pay-for-performance. Furthermore, it investigates whether the factors used form part of the reasons why remuneration consultants have been criticised to be correlated with high executive pay.

Design/methodology/approach

This paper analysis the data obtained from interviewing remuneration consultants from prominent consultancy firms that operate in the UK and the USA.

Findings

This paper demonstrates that there is no uniformity in the factors used by remuneration consultants when selecting comparator groups for executive remuneration benchmarking. The paper shows that company performance is not a major factor considered justifying why executive pay is not linked to company performance. The paper further demonstrates that the factors that remuneration consultants consider in selecting comparator groups for executive remuneration benchmarking justify high pay and affirm that remuneration consultants are associated with high pay.

Originality/value

This paper demonstrates the effect that lack of best practice on benchmarking is partly responsible for the high executive pay levels and the weak link between pay and performance. This paper will inform companies on what to demand from remuneration consultants when hiring their services. Second, it will provide the shareholders with vital information that they need to vote on remuneration reports in the annual general meeting. Finally, it informs policy makers on the grey areas of practice that require best practice.

Details

International Journal of Law and Management, vol. 57 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 11 November 2013

Antonio Dell'Atti, Mariantonietta Intonti and Antonia Patrizia Iannuzzi

Following the subprime crisis and the detrimental role played by remuneration practices, an important reform concerned bank remuneration committees, especially in “significant…

1076

Abstract

Purpose

Following the subprime crisis and the detrimental role played by remuneration practices, an important reform concerned bank remuneration committees, especially in “significant financial institutions”. In light of this consideration, this paper aims to investigate the scope and format of this renewal in order to verify whether and how those bodies are conforming to the new regulatory framework while improving their efficiency and functionality.

Design/methodology/approach

The study was carried out on 30 top European banks through the elaboration of a qualitative analysis model that takes into account both the procedural and the compositional aspects of remuneration committees. The model was used as a benchmark for assessing the effectiveness of the remuneration committees operating within a sample. This assessment was carried out according to the content analysis approach.

Findings

The results show a high diffusion of these bodies within the banks and a gradual expansion, during the time under investigation (three years 2008-2010), of the information provided by them on their tasks and decision-making. In the same time, the study highlights some important criticalities concerning both the composition of the banks' remuneration committees, how they carry out their functions, and the level of disclosure addressed to shareholders and the market in order to formalize the results of their work.

Originality/value

The added value of the analysis is related to the implementation of an “effectiveness remuneration committee rating” applied to a sample of top European banks during the financial crisis.

Details

Journal of Financial Regulation and Compliance, vol. 21 no. 4
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 20 November 2009

Philip J. Morgan and Neil Nick Robson

The purpose of this paper is to explain UK Financial Services Authority (FSA) Policy Statement 09/15, Reforming Remuneration Practices in Financial Services, (the “Code”) which…

186

Abstract

Purpose

The purpose of this paper is to explain UK Financial Services Authority (FSA) Policy Statement 09/15, Reforming Remuneration Practices in Financial Services, (the “Code”) which requires certain large banks, building societies and broker‐dealers in the UK to establish, implement and maintain remuneration policies that are consistent with and promote effective risk management.

Design/methodology/approach

The paper explains the background to the Code, including the FSA's views on bonuses and remuneration; describes the characteristics of the approximately 26 large firms to which the Code will apply; discusses the Code's principles concerning remuneration; details the timing of the key steps for implementation of the Code; explains information on remuneration firms must provide to the FSA; and discusses the FSA's plans for follow‐up.

Practical implications

The FSA is likely to publish similar remuneration guidelines that will extend to all FSA‐authorized firms.

Originality/value

The paper provides practical guidance from experienced financial services lawyers; a possible bellwether of future similar policies from financial regulators in other countries.

Details

Journal of Investment Compliance, vol. 10 no. 4
Type: Research Article
ISSN: 1528-5812

Keywords

Article
Publication date: 6 August 2019

Abdul Rohim and I Gede Sujana Budhiasa

The purpose of this paper is to examine whether organizational rewards are able to improve knowledge sharing and have an impact on employee performance moderated by organizational…

4109

Abstract

Purpose

The purpose of this paper is to examine whether organizational rewards are able to improve knowledge sharing and have an impact on employee performance moderated by organizational culture type in Ternate Municipal Government.

Design/methodology/approach

The design for data collection a uses survey approach, that is a form of research conducted to obtain facts about the phenomena that exist in regional government organizations to seek more factual and systematic information. The research was conducted in Ternate Municipal Government area of North Maluku Province, Indonesia. The organizations of regional apparatus are public sector agencies responsible for providing services to the public. The population in this study is echelon IIb‒IVb officials in regional apparatus organizations and certain structural officials. The units of analysis that are focused on in this research are the head of local agency, body, and office; the secretary of local agency, body and office; the head of board, the head of division, the head of the sub-board and the head of sub-division.

Findings

Organizational rewards in the form of giving economic rewards as remuneration, such as employee performance allowance, significantly affect individual attitudes in knowledge sharing. The interaction between the variable of remuneration with clan culture has a significant effect on knowledge sharing; these findings suggest that clan culture is a pure moderation variable that strengthens the relationship between remuneration and knowledge sharing. The result of this research proves that the interaction between the variable of remuneration with adhocracy culture has no significant effect on knowledge sharing. The interaction between the variable of remuneration with hierarchical culture has a significant negative effect on knowledge sharing. Market culture is not proven to moderate the relationship between remuneration and knowledge sharing. However, market culture variables directly and significantly affect knowledge sharing.

Originality/value

This research is the development of a research model conducted by Durmusoglu et al. (2014). The previous model uses organizational culture with a knowledge-sharing culture instrument, whereas this research develops organizational culture by using the type of organizational culture by Cameron and Quinn (1999), namely clan culture, adhocratic culture, hierarchical culture, and market culture. This type of organizational culture as a moderating variable can be expected to play a role in strengthening organizational rewards toward sharing knowledge and also impacting employee performance. Howell et al. (1986) revealed that organizational culture can strengthen the relationship between organizational rewards and disseminated knowledge. Hence, organizational culture moderates the relationship between organizational rewards for knowledge sharing to build upon Durmusoglu et al. (2014).

Details

Journal of Management Development, vol. 38 no. 7
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 1 February 1996

James J. Hughes

Discusses the recommendations of the Greenbury Committee on the remuneration of directors in public companies. Specifically comments on the following issues: the establishment…

6185

Abstract

Discusses the recommendations of the Greenbury Committee on the remuneration of directors in public companies. Specifically comments on the following issues: the establishment, membership and status of remuneration committees in public companies; the determination of remuneration policy for executive directors; the disclosure and approval of the details of remuneration policy; the length of service contracts and the determination of compensation when these are terminated. Suggests that progress in implementing them should be monitored, given the importance of the Greenbury proposals.

Details

International Journal of Manpower, vol. 17 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 27 January 2023

Alex Almici

This paper aims to verify whether the integration of sustainability in executive compensation positively affects firms’ non-financial performance and whether corporate governance…

3297

Abstract

Purpose

This paper aims to verify whether the integration of sustainability in executive compensation positively affects firms’ non-financial performance and whether corporate governance characteristics enhance the relationship between sustainability compensation and firms’ non-financial performance and to expand the domain of the impact of sustainability on non-financial performance.

Design/methodology/approach

This analysis is based on a sample of companies listed on the Milan Italian Stock Exchange from the Financial Times Milan Stock Exchange Index over the 2016–2020 period. Regression analysis was used by using data retrieved from the Refinitiv Eikon database and the sample firms’ remuneration reports.

Findings

The findings of this paper show that embedding sustainability in executive compensation positively affects firms’ non-financial performance. The results of this paper also reveal that specific corporate governance features can improve the impact of sustainability on non-financial performance.

Research limitations/implications

This analysis is limited to Italian firms included in the Financial Times Milan Stock Exchange Index; however, the findings are highly significant.

Practical implications

The findings provide regulators with useful insights for considering the integration of sustainability goals into executive remuneration. Another implication is that policymakers should require – at least – listed firms to fulfil specific corporate governance structural requirements. Finally, the findings can provide investors and financial analysts with a greater awareness of the role played by executive remuneration in the long-term value-creation process.

Originality/value

This paper contributes to addressing the relationship among sustainability, remuneration and non-financial disclosure, drawing on the stakeholder–agency theoretical framework and focusing on Italian firms. This issue has received limited attention with controversial results in the literature.

Details

Meditari Accountancy Research, vol. 31 no. 7
Type: Research Article
ISSN: 2049-372X

Keywords

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