TITLE

EXPLAINING PAY WITHOUT PERFORMANCE: THE TOURNAMENT ALTERNATIVE

AUTHOR(S)
Anabtawi, Iman
PUB. DATE
October 2005
SOURCE
Emory Law Journal;Fall2005, Vol. 54 Issue 4, p1557
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses the shortcomings of the optimal contracting model of executive compensation in the U.S. In the optimal contracting model of executive compensation, boards of directors of corporations negotiate compensation arrangements with executives in a way that maximizes shareholder values. Specifically, the model predicts a meaningful relationship between executive pay and performance. However, studies have not shown a convincing relationship between executive pay and performance. The managerial power theory of executive compensation is proposed to explain executive pay without performance.
ACCESSION #
20194237

 

Related Articles

  • Giving boards new tools to construct more effective executive compensation. Delves, Donald P. // NACD Directorship;Jan2004, Vol. 30 Issue 1, p9 

    Discusses the significance of executive compensation as a tool for directors' effective job performance. Steps in changing the status quo of executive pay; Ways in which equity incentives can be used to make payment more performance-based; Forms of executive compensation that boards should...

  • Director compensation poised for major change. Posnak, Diane D. // NACD Directorship;May2003, Vol. 29 Issue 5, p18 

    Offers a look at the trends in corporate board compensation in the U.S. in 2002. Average amount of board remuneration; Use of stock options for board compensation; Variation in pay packages; Coverage of compensation packages.

  • Corporate governance and the information gap: The use of financial and non-financial information in executive compensation. Schiehll, Eduardo; Andre, Paul // Ivey Business Journal;Mar/Apr2003, Vol. 67 Issue 4, p1 

    Discusses the integration of financial and non-financial measures of performance in executive compensation. Information on traditional accounting and market-based performance measures; Correlation between the use of non-financial performance measures in the bonus of executives and the...

  • Southern comfort.  // Director (00123242);Nov95, Vol. 49 Issue 4, p32 

    Compares the basic pay of directors, managers and clerks in several regions of Great Britain. Impact of cost of living factor on directors' remuneration; Regions where median basic pay is above the national average.

  • Pay catch-up.  // New Zealand Management;Aug2005, Vol. 52 Issue 7, Special Section p12 

    The article discusses the results of a survey of New Zealand organisations regarding governance recruitment and remuneration practices for corporate directors, as of August 2005. The top three ranking reasons for increased director workloads are presented. The survey provided information on...

  • The value of directors. Read, Ellen // New Zealand Management;Aug2007, Vol. 54 Issue 7, p89 

    In this article, the author takes a look the results of a 2007 survey on salaries of corporate directors in New Zealand. The author talked to Sheffield Director Sherry Maier about her findings. According to Maier, the pay gap between New Zealand and Australian directors is narrowing, but there...

  • MON£Y FOR NOTHING? Hope, Katie // People Management;1/26/2006, Vol. 12 Issue 2, p24 

    The article focuses on issues concerning executive pay in Great Britain as of January 2006. Results from the latest report on directors' pay from Incomes Data Services are provided. Advice from the National Association of Pension Funds for companies regarding the disclosure of their ratio of...

  • DIRECTORS' REMUNERATION AND ITS DETERMINANTS: What do we know? Mnzava, Bernard // Business & Management Review;Jun2012, Vol. 2 Issue 4, p42 

    This article surveys the literature along two dimensions that reflect important issues in managerial compensation. The first part reviews components and structure of managerial pay. The second part reviews determinants of directors' compensation. My review demonstrates that firm performance is...

  • Executive Compensation: The Alignment Myth.  // NACD Directorship;Jan/Feb2013, Vol. 39 Issue 1, p70 

    The author discusses pay for performance programs proposed by the shareholders of U.S. company board of directors about effective compensation system for executives in a corporate. The autos are critical of assessments through which the compensations are provided including payment techniques,...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics