In many countries, gender diversity in the workplace is a hot topic and the role of women on corporate boards and compensation committees has come under scrutiny from regulators and legislators. A recent study of US companies examined the effect of compensation committee gender diversity on CEO compensation. Unsurprisingly, women were found to be underrepresented on compensation committees, however of the female members that there were, they were found to be younger and less experienced that their male counterparts. Additionally, greater gender diversity on compensation committees was not found to significantly influence the determination of CEO compensation.
Key Topics: Compensation committee; Gender diversity; Executive compensation; CEO compensation
With employee health problems and associated employer costs on the rise, many companies are looking for novel ways to improve employee wellness. A study at Cornell University examined the effect of tying 10% of manager compensation to employee wellness and found that managers were more likely to promote employee wellness when incentivized to do so, and managers also expressed a preference to work for companies with such incentives in place.
Key Topics: Workplace wellness; Employee health; Performance evaluations; Management compensation
The role of long term incentives, particularly equity holdings, in the decision making of CEOs has long been an area of interest for researchers and practitioners alike, given the potential significance of this relationship in company performance. A recent study of CEOs of US companies examined how a CEOs stock option holdings can affect their preference for short- or long-term strategic projects. The study found that when CEOs have accumulated stock option wealth, their likelihood of investing in the long-term increases, however when they have a large amount of recently granted options CEOs are more likely to prefer short-term projects.
Key Topics: Executive compensation; Stock options; Long term incentives; CEO decision making; Temporal orientation
With pension plans increasingly under the microscope in many companies, a recent 8-year study in the US examined the role of board composition in determining pension policies. The results indicate that outside directors play a valuable role in maintaining the interests of pension beneficiaries, with regards to both pension plan funding levels and asset allocations, and particularly in times of financial distress they help to keep the board on course to meeting its obligations toward pension plan beneficiaries.
Key Topics: Board of directors; Board composition; Outside directors; Pension policies; Defined benefit pension plans
It is not always easy to sympathise with CEOs, particularly when it comes to compensation, however a US study sought to shed light on the personal financial impact of corporate bankruptcy on CEOs and how it affects their career earnings. The study examined CEOs of US companies that filed for bankruptcy and found that for CEOs who left the executive labor market following their tenure with a bankrupt company, there was a significant financial loss incurred over the remainder of their career. For those maintaining executive employment, no adverse personal financial effects were found.
Key Topics: CEO compensation; Bankruptcy costs; Executive turnover
The role of management bonuses in employee behavior is a little researched area but one that is potentially of great significance for companies. A study in Canada looked at the impact of management pay for performance bonus eligibility on the turnover levels of non-management employees. The results indicate that management bonus eligibility is indeed related to greater levels of voluntary non-management employee turnover, but is not related to greater involuntary turnover.
Key Topics: Pay for performance; Bonus eligibility; Employee turnover |
Popular Reward Chronicle Searches
Compensation. Pay for performance Benefits Millennials Exec compensation Motivation Gender Topics
All
Join The Reward Chronicle Team
Are you passionate about reward? We’d love to hear from you. Click here for more details on how to contact us. |