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1 – 10 of 23Stephen J. Perkins and Susan Shortland
The purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation…
Abstract
Purpose
The purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation governing the determination/reporting of executive remuneration in UK stock market listed companies. Practical points from actors involved in executive remuneration decision-making/reporting are presented, set within the context of neo-institutional theory.
Design/methodology/approach
This qualitative research systematically analyses UK Corporate Governance Codes, the FRC’s recent Review/Consultation and peer-reviewed published studies of executive pay determination based on in-depth interviews with non-executive directors, institutional investors, executive pay advisers and human resources (HR) professionals.
Findings
Further regulation, while providing coercive influence over executive remuneration decision-making, is likely to lead to only limited change in processes and reporting due to benchmarking, the make-up of Remco membership and shareholders' preferences. Mimetic and normative isomorphic forces work against coercive isomorphism leading to resistance to change as decision-makers strive to safeguard their social status/reputations.
Practical implications
Reviewing executive remuneration package components and paying attention to company strategy, sustainability and values in pay determination are welcomed but recognised as difficult to achieve. Drawing upon a wider range of information sources/voices can assist in broadening the discussion. HR professionals can help widen stakeholder input to executive remuneration decision-making.
Originality/value
The authors’ viewpoint is grounded in peer-reviewed empirical data that draws directly upon the views/experiences of executive remuneration decision-makers to identify problems in adhering to FRC recommendations for change. The authors extend the meta-theoretical perspective of neo-institutional theory – specifically institutional isomorphism – as providing explanatory and predictive power to understand executive pay decision-making.
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Susan Shortland and Stephen J. Perkins
The purpose of this paper is to understand how those involved in executive pay determination in large publicly quoted UK businesses see the role of diversity within remuneration…
Abstract
Purpose
The purpose of this paper is to understand how those involved in executive pay determination in large publicly quoted UK businesses see the role of diversity within remuneration committees (Remcos) as enabling the input of different perspectives, which can enhance their decision-making and potentially improve pay outcomes.
Design/methodology/approach
Qualitative, semi-structured interviews were undertaken with 18 high-profile major-enterprise decision-makers and their advisers, i.e. non-executive directors (NEDs) serving Remcos, institutional investors, executive pay consultants and internal human resources (HR) reward specialists, together with data from three focus groups with 10 further reward management practitioners.
Findings
Remco members recognise the benefits of social category/demographic diversity but say the likelihood of increasing this is low, given talent pipeline issues. The widening of value diversity is considered problematic for Remcos’ functioning. Informational diversity is used as a proxy for social category/demographic diversity to improve Remcos’ decision-making on executive pay. While the inclusion of members from wider social networks is recognised as potentially bringing a different informational perspective, the social character of Remcos, reflecting their elite nature and experience of wealth, appears ingrained.
Originality/value
Our original contribution is to extend the application of upper echelons theory in the context of Remco decision-making to explain why members do not welcome widening informational diversity by appointing people from different social networks who lack value similarity. Instead, by drawing views from employees, HR acts as a proxy for social network informational diversity. The elite, upper-echelons nature of Remco appointments remains unchanged and team functioning is not disrupted.
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Susan Shortland and Stephen J. Perkins
The purpose of this paper is to examine how and why individuals involved in executive remuneration (top pay) decision-making consider quantum as being appropriate rather than…
Abstract
Purpose
The purpose of this paper is to examine how and why individuals involved in executive remuneration (top pay) decision-making consider quantum as being appropriate rather than excessive, theorised under the rubric of accountability.
Design/methodology/approach
In-depth interviews were conducted with non-executive directors (NEDs) serving on remuneration committees (Remcos), institutional investors, their external advisers and internal HR reward experts. Transcripts were analysed using NVivo and the Gioia qualitative methodology.
Findings
Defining, measuring and applying performance conditionality in the determination of top pay quantum such that it aligns with company strategy/culture and values, as well as individual recipient motivations, is difficult. While creative approaches to setting top pay so as to attract, retain and motivate key personnel are welcomed, these risk Remco members' personal/organisational reputations. Members recognise disconnection between top pay quantum and general pay levels and how the media highlights social inequality leading to public distrust. They believe they can contribute to more socially acceptable quantum by applying their own values in top pay decision-making.
Originality/value
Sanctions-based, trust-based and selection/peer networks/felt-based accountability theory is used to explain decision-makers’ actions when determining top pay quantum. This paper extends felt accountability theory to encompass public/societal accountability in the context of the appropriateness of top pay quantum decisions.
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Stephen J. Perkins and Susan Shortland
Drawing on institutional theory, this study aims to analyse the regulation of executive remuneration as espoused in the United Kingdom (UK) codified corporate governance…
Abstract
Purpose
Drawing on institutional theory, this study aims to analyse the regulation of executive remuneration as espoused in the United Kingdom (UK) codified corporate governance principles, focussing on sources of advice to decision-makers, the nature of the advice sought and given, and interaction of those involved in the process.
Design/methodology/approach
A qualitative research design was used. Data were assembled from interviewing non-executive board/remuneration committee members; institutional investors; external remuneration consultants and internal human resources (HR)/reward specialists. Results were analysed in accordance with the Gioia technique.
Findings
Tensions inherent in the interpretation of corporate governance codes are illustrated. Emphasis on independent advice combined with constraints on decision-makers' capacity to navigate the nuances of a complex field and reputational concerns risks standardised instead of bespoke remuneration approaches aligned with corporate contexts.
Practical implications
There is a role for internal HR advisors to add value through their potential to reduce the gap within remuneration committees between institutional contexts and independent decision-making, facilitating more strategic human resource management inspired executive remuneration.
Originality/value
Application of institutional theory indicates the relevance of balancing external with internal sources to secure advice that is horizontally and vertically aligned within an organisation to meet the letter and spirit of corporate governance norms. Extending the explanatory power of institutional theory, care is needed though not to overlook the normative underpinnings of professional advisors' own value sets.
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Harvey C. Perkins, Michael Mackay and Jude Wilson
The authors report a study of heritage conservation linked to rural small-town regeneration in Aotearoa New Zealand. The purpose of this study is to answer the question: how, with…
Abstract
Purpose
The authors report a study of heritage conservation linked to rural small-town regeneration in Aotearoa New Zealand. The purpose of this study is to answer the question: how, with limited local resources, do the residents and administrators of small settlements conserve historic heritage in the processes of rural regeneration?
Design/methodology/approach
This research is based on an analysis of physical heritage objects (buildings, artefacts and landscapes), associated regulatory arrangements, archival material, news media reporting, community group newsletters and photography. The authors use the river-side town of Rakaia and its environs in Te Waipounamu/the South Island of Aotearoa New Zealand to answer the research question.
Findings
This research found that in a context of limited resources, volunteers, supported by small businesses and local and central government, can contribute positively to the conservation and interpretation of heritage as part of wider rural regeneration activities.
Originality/value
There is only limited writing on the links between heritage conservation, rural regeneration and the development of small towns. To advance the debate, the authors combine ideas about community-led heritage conservation and management with concepts drawn from rural studies, particularly the multifunctional rural space paradigm. This allows us to explore heritage conservation in a context of rapid rural change.
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Nicholous M. Deal, Mark D. MacIsaac, Albert J. Mills and Jean Helms Mills
The purpose of this paper is to revisit the potential of the New Deal as a research context in management and organization studies and, in doing so, forward the role one of its…
Abstract
Purpose
The purpose of this paper is to revisit the potential of the New Deal as a research context in management and organization studies and, in doing so, forward the role one of its chief architects, Harry Hopkins, played in managing the economic crisis. The exploration takes us to multiple layers that work together to form context around Hopkins including the Great Depression, the Roosevelt Administration, and ultimately, the New Deal. By raising Harry Hopkins as an exemplar of historical-narrative exclusion, the authors can advance the understanding of his role in the New Deal and how his actions produced early insights about management (e.g. modern crisis management).
Design/methodology/approach
The paper experiments with the methodological assemblage of ANTi-History and microhistorical analysis that the authors call “ANTi-Microhistory” to examine the life narrative of Harry Hopkins, his early association with President Franklin D. Roosevelt and later, the New Deal. To accomplish this, the authors undertake a programme of archival research (e.g. the digital repository of The Franklin D. Roosevelt Presidential Library and Museum) and assess various materials (e.g. speeches, biographies and memoirs) from across multiple spaces.
Findings
The findings suggest Harry Hopkins to be a much more powerful actor in mobilizing New Deal policies and their effect on early management thought than what was previously accepted. In the process, the authors found that because of durable associations with Roosevelt, key policy architects of the same ilk as Harry Hopkins (e.g. Frances Perkins, Henry Wallace, Lewis Douglas, and others) and their contributions have been marginalized. This finding illustrates the significant potential of little-known historical figures and how they might shed new insight on the development of the field and management practice.
Originality/value
The aim is to demonstrate the potential of engaging historical research in management with the individual – Harry Hopkins – as a unit of analysis. By engaging historical research on the individual – be it well-known or obscure figures of the past – the authors are considering how they contribute to the understanding of phenomena (e.g. New Deal, Progressivism or Keynesian economics). The authors build on research that brings to focus forgotten people, communities and ideas in management studies but go further in advocating for space in the research to consider the scholarly potential of the individual.
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Maria Teresa Ferazzoli and Lily Kpobi
This paper aims to provide new insights into and offer potential solutions to the challenges encountered by mental health services working with remote, rural or underserved…
Abstract
Purpose
This paper aims to provide new insights into and offer potential solutions to the challenges encountered by mental health services working with remote, rural or underserved communities in the UK.
Design/methodology/approach
In this paper, the authors reflect on the utility of integrating conventional clinical approaches, with preventive care and empowering work within the community, to provide culturally sensitive and accessible mental health services. The authors describe an example of community intervention from a mental health service in Ghana designed to enhance reach within remote and rural communities and identify potential lessons for practice in the UK.
Findings
The partnership between community mental health services and the rural communities, including families and existing social frameworks, applies collaborative care to overcome the lack of resources and facilitate the acceptability of mental health services to the local population. There are a series of important lessons from this experience including the importance of understanding the culture of a community to optimise reach and the importance of working IN the community and WITH the community.
Originality/value
This paper is novel because it provides learning from a model of care applied in the global south that has potential for implementation with underserved populations in the UK. The authors suggest a reframing of the notion of community care to encompass existing frameworks of community, not merely a biomedical conceptualisation.
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