CEO Compensation in Japan: Why So Different from the United States?

2018 ◽  
Vol 53 (5) ◽  
pp. 2261-2292
Author(s):  
Luyao Pan ◽  
Xianming Zhou
Keyword(s):  
United States ◽  
Ceo Compensation ◽  
Direct Evidence ◽  
Level Structure ◽  
Chief Executive ◽  
The United States ◽  
Incentive Contracts ◽  
Matched Sample ◽  
Director Compensation ◽  
Ceo Pay

In Mar. 2010, Japan’s financial regulator implemented the country’s first legislation concerning the disclosure of director compensation for named individuals. Using the first publicly available data for Japanese executives, we document direct evidence on the level, structure, and mechanisms of chief executive officer (CEO) compensation in Japan and perform a matched-sample comparison between Japan and the United States. In contrast to the findings of recent studies showing that international differentials in CEO pay have largely disappeared since the mid-2000s, our results show strikingly large differences between the Japanese and American systems that are difficult to explain by differences in conventional incentive contracts.

scholarly journals CEO Monitoring and Board Effectiveness: Resolving the CEO Compensation Issue

2018 ◽  
Vol 21 (2) ◽  
pp. 123-134
Author(s):  
Chiraz Ben Ali ◽  
Frédéric Teulon
Keyword(s):  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Chief Executive ◽  
Board Governance ◽  
Board Effectiveness ◽  
Past Performance ◽  
Compensation Committee ◽  
Ceo Pay ◽  
Executive Officers ◽  
The Impact

This study examines the impact of board governance mechanisms on the pay of Chief Executive Officers (CEOs) using a sample of major French listed companies for the 2009–2011 period. The results show that CEO pay is negatively associated with the presence of a family CEO and positively associated with board size, busy directors, board meetings, and compensation committee independence. We provide further evidence that CEO compensation increases with firm size, and both present and past performance. Our study casts doubt on the effectiveness of formal board attributes in constraining CEO compensation.

scholarly journals CEO Compensation and Firm Performance: The Role of ESG Transparency

2020 ◽  
Vol 4 (2) ◽  
pp. 278
Author(s):  
Chetna Rath ◽  
Florentina Kurniasari ◽  
Malabika Deo
Keyword(s):  
Firm Performance ◽  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Negative Relationship ◽  
Chief Executive ◽  
Long Run ◽  
Ceo Pay ◽  
Executive Officers ◽  
The Impact

Chief executive officers (CEOs) of environmental, social, and governance (ESG) firms are known to take lesser pay and engage themselves in corporate social responsibility activities to achieve the dual objective of the enhancement of firm’s performance as well as benefit for stakeholders in the long run. This study examines the role of ESG transparency in strengthening the impact of firm performance on total CEO pay in ESG firms. A panel of 67 firms for the period of 2014–2019 has been analyzed using the two-step system GMM model, with NSE Nifty 100 ESG Index as the data sample and ESG scores from Bloomberg database as a proxy for transparency. Findings reveal that environmental and governance disclosure scores have the potential to intensify the negative relationship between firm performance and CEO compensation, while social disclosure scores do not. In addition, various firm-specific, board-specific, and CEO-specific attributes have also been considered controls affecting remuneration. This paper contributes to the literature by exploring the effect of exhibiting ESG transparency and its nexus with CEO pay as well as firm performance.

By Executive Order

2021 ◽  
Author(s):  
Andrew Rudalevige
Keyword(s):  
United States ◽  
Chief Executive ◽  
The United States ◽  
Executive Branch ◽  
Federal Agencies ◽  
Presidential Power ◽  
Executive Order ◽  
Personal Power ◽  
Executive Orders

The president of the United States is commonly thought to wield extraordinary personal power through the issuance of executive orders. In fact, the vast majority of such orders are proposed by federal agencies and shaped by negotiations that span the executive branch. This book provides the first comprehensive look at how presidential directives are written — and by whom. The book examines more than five hundred executive orders from the 1930s to today — as well as more than two hundred others negotiated but never issued — shedding vital new light on the multilateral process of drafting supposedly unilateral directives. The book draws on a wealth of archival evidence from the Office of Management and Budget and presidential libraries as well as original interviews to show how the crafting of orders requires widespread consultation and compromise with a formidable bureaucracy. It explains the key role of management in the presidential skill set, detailing how bureaucratic resistance can stall and even prevent actions the chief executive desires, and how presidents must bargain with the bureaucracy even when they seek to act unilaterally. Challenging popular conceptions about the scope of presidential power, the book reveals how the executive branch holds the power to both enact and constrain the president's will.

scholarly journals Why East Asians but not South Asians are underrepresented in leadership positions in the United States

2020 ◽  
Vol 117 (9) ◽  
pp. 4590-4600 ◽  
Author(s):  
Jackson G. Lu ◽  
Richard E. Nisbett ◽  
Michael W. Morris
Keyword(s):  
United States ◽  
Chief Executive Officers ◽  
South Asians ◽  
Chief Executive ◽  
The United States ◽  
Leadership Positions ◽  
East Asians ◽  
Cultural Fit ◽  
Bamboo Ceiling ◽  
Executive Officers

Well-educated and prosperous, Asians are called the “model minority” in the United States. However, they appear disproportionately underrepresented in leadership positions, a problem known as the “bamboo ceiling.” It remains unclear why this problem exists and whether it applies to all Asians or only particular Asian subgroups. To investigate the mechanisms and scope of the problem, we compared the leadership attainment of the two largest Asian subgroups in the United States: East Asians (e.g., Chinese) and South Asians (e.g., Indians). Across nine studies (n= 11,030) using mixed methods (archival analyses of chief executive officers, field surveys in large US companies, student leader nominations and elections, and experiments), East Asians were less likely than South Asians and whites to attain leadership positions, whereas South Asians were more likely than whites to do so. To understand why the bamboo ceiling exists for East Asians but not South Asians, we examined three categories of mechanisms—prejudice (intergroup), motivation (intrapersonal), and assertiveness (interpersonal)—while controlling for demographics (e.g., birth country, English fluency, education, socioeconomic status). Analyses revealed that East Asians faced less prejudice than South Asians and were equally motivated by work and leadership as South Asians. However, East Asians were lower in assertiveness, which consistently mediated the leadership attainment gap between East Asians and South Asians. These results suggest that East Asians hit the bamboo ceiling because their low assertiveness is incongruent with American norms concerning how leaders should communicate. The bamboo ceiling is not an Asian issue, but an issue of cultural fit.

scholarly journals The relationship between chief executive officer compensation and the size and industry of South African state-owned enterprises

2019 ◽  
Vol 17 ◽  
Author(s):  
Mariette Coetzee ◽  
Magda L. Bezuidenhout
Keyword(s):  
Chief Executive Officers ◽  
Ceo Compensation ◽  
African State ◽  
Chief Executive ◽  
Annual Reports ◽  
Performance Contracts ◽  
Ceo Pay ◽  
Managerial Implications ◽  
Executive Officers ◽  
The Relationship

Orientation: Concerns about exorbitant executive compensation are making headlines, because executives receive lucrative packages despite state-owned enterprises (SOEs) performing poorly. It appears as if chief executive officers (CEOs) are not being held accountable for the performance of the SOEs.Research purpose: The purpose of the study was to determine whether the size and the industry of an SOE had an impact on CEO compensation packages.Motivation for the study: A greater understanding of the relationship between CEO remuneration and the size and type of industry of SOEs would assist with the standardisation of CEO remuneration and linking CEO pay to SOE performance.Research approach/design and method: A multiple regression analysis on a pooled dataset of 162 panel observations was conducted over a 9-year period. Financial data of 18 SOEs were extracted from the McGregor BFA database and the annual reports of SOEs.Main findings: The findings show that the size of an SOE does not influence the total compensation of CEOs. However, larger SOEs pay larger bonuses due to these SOEs being in a stronger financial position to offer lucrative bonuses. CEO’s remuneration was aligned within certain industries.Practical/managerial implications: The findings emphasise the need to link CEO compensation with SOE performance. Standardisation in setting CEO compensation and implementing performance contracts should be considered.Contribution/value-add: The study confirms that CEO pay is not linked to performance and not justified when considering SOE size or industry.

Reviewing CIO Comments

2011 ◽  
pp. 226-247 ◽  
Author(s):  
M. Gordon Hunter
Keyword(s):  
United States ◽  
New Zealand ◽  
Chief Executive Officer ◽  
United States Of America ◽  
Chief Executive ◽  
The United States ◽  
Chief Information Officers ◽  
Foreseeable Future ◽  
Emerging Themes

This book is about the experiences of contemporary chief information officers (CIO). CIOs in New Zealand, Taiwan, and the United States of America agreed to participate. They also agreed to be identified along with the name of their company. They provided their interpretation of issues that have been dealt with and those they anticipate having to deal with in the foreseeable future. The results of the interviews allowed the identification of emerging themes related to management and technological aspects. Another important result is the identification of an alignment issue. That is, it is important to ensure that the interpretation of the CIO role is clearly and explicitly agreed upon by both the chief executive officer (CEO) and the CIO.

Kathleen Starkoff, Limited Brands

2011 ◽  
pp. 206-212
Author(s):  
Kathleen Starkoff
Keyword(s):  
United States ◽  
New Zealand ◽  
Chief Executive Officer ◽  
United States Of America ◽  
Chief Executive ◽  
The United States ◽  
Chief Information Officers ◽  
Foreseeable Future ◽  
Emerging Themes

This book is about the experiences of contemporary chief information officers (CIO). CIOs in New Zealand, Taiwan, and the United States of America agreed to participate. They also agreed to be identified along with the name of their company. They provided their interpretation of issues that have been dealt with and those they anticipate having to deal with in the foreseeable future. The results of the interviews allowed the identification of emerging themes related to management and technological aspects. Another important result is the identification of an alignment issue. That is, it is important to ensure that the interpretation of the CIO role is clearly and explicitly agreed upon by both the chief executive officer (CEO) and the CIO.

Angelo Mazzocco, The Dispatch Companies

2011 ◽  
pp. 185-196
Author(s):  
Angelo Mazzocco
Keyword(s):  
United States ◽  
New Zealand ◽  
Chief Executive Officer ◽  
United States Of America ◽  
Chief Executive ◽  
The United States ◽  
Chief Information Officers ◽  
Foreseeable Future ◽  
Emerging Themes

This book is about the experiences of contemporary chief information officers (CIO). CIOs in New Zealand, Taiwan, and the United States of America agreed to participate. They also agreed to be identified along with the name of their company. They provided their interpretation of issues that have been dealt with and those they anticipate having to deal with in the foreseeable future. The results of the interviews allowed the identification of emerging themes related to management and technological aspects. Another important result is the identification of an alignment issue. That is, it is important to ensure that the interpretation of the CIO role is clearly and explicitly agreed upon by both the chief executive officer (CEO) and the CIO.

Marty Luffy, Installed Building Products

2011 ◽  
pp. 173-184
Author(s):  
Marty Luffy
Keyword(s):  
United States ◽  
New Zealand ◽  
Chief Executive Officer ◽  
United States Of America ◽  
Chief Executive ◽  
The United States ◽  
Chief Information Officers ◽  
Foreseeable Future ◽  
Building Products ◽  
Emerging Themes

This book is about the experiences of contemporary chief information officers (CIO). CIOs in New Zealand, Taiwan, and the United States of America agreed to participate. They also agreed to be identified along with the name of their company. They provided their interpretation of issues that have been dealt with and those they anticipate having to deal with in the foreseeable future. The results of the interviews allowed the identification of emerging themes related to management and technological aspects. Another important result is the identification of an alignment issue. That is, it is important to ensure that the interpretation of the CIO role is clearly and explicitly agreed upon by both the chief executive officer (CEO) and the CIO.

Jonathan Dove, Worthington Industries

2011 ◽  
pp. 152-161
Author(s):  
Jonathan Dove
Keyword(s):  
United States ◽  
New Zealand ◽  
Chief Executive Officer ◽  
United States Of America ◽  
Chief Executive ◽  
The United States ◽  
Chief Information Officers ◽  
Foreseeable Future ◽  
Emerging Themes

This book is about the experiences of contemporary chief information officers (CIO). CIOs in New Zealand, Taiwan, and the United States of America agreed to participate. They also agreed to be identified along with the name of their company. They provided their interpretation of issues that have been dealt with and those they anticipate having to deal with in the foreseeable future. The results of the interviews allowed the identification of emerging themes related to management and technological aspects. Another important result is the identification of an alignment issue. That is, it is important to ensure that the interpretation of the CIO role is clearly and explicitly agreed upon by both the chief executive officer (CEO) and the CIO.

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