The Association between Top Management Involvement and Compensation and Information Security Breaches

2012 ◽  
Vol 27 (1) ◽  
pp. 219-236 ◽  
Author(s):  
Juhee Kwon ◽  
Jackie Rees Ulmer ◽  
Tawei Wang

ABSTRACT This paper examines how an information technology (IT) executive's position in a top management team and how his/her compensation are associated with the likelihood of information security breaches. Using a sample drawn from multiple sources in the period from 2003 to 2008, we show that an IT executive's involvement in the top management team is negatively related to the possibility of information security breaches. We also find that the amount of behavior-based (i.e., salary) compensation and the pay differences of outcome-based (i.e., bonuses, stock awards, and stock options) compensation between IT and non-IT executives are negatively associated with the likelihood of information security breaches. Our findings shed light on how an IT executive's status in the top management team and the composition of his/her compensation can be related to a firm's IT governance mechanisms.

2015 ◽  
pp. 1436-1455
Author(s):  
Carol Hsu ◽  
Tawei Wang

Given the multifaceted problems and complexities of information security, the manner in which top management teams make investment and management decisions regarding security technologies, policy initiatives, and employee education could have a significant impact on the likelihood of information security breaches in organizations. In the context of information security management, it is not clear from management literature regarding how the characteristics of the top management team are associated with the possibility of information security breaches. The results demonstrate that the average length and heterogeneity of tenure could increase the possibility of breaches. However, age heterogeneity and the size of the top management team are negatively related to such a possibility. In addition, the findings suggest a nonlinear association between average age and tenure and the possibility of security breaches. The authors conclude the chapter with theoretical and practical implications on the organizational and managerial aspects of information security management.


Author(s):  
Carol Hsu ◽  
Tawei Wang

Given the multifaceted problems and complexities of information security, the manner in which top management teams make investment and management decisions regarding security technologies, policy initiatives, and employee education could have a significant impact on the likelihood of information security breaches in organizations. In the context of information security management, it is not clear from management literature regarding how the characteristics of the top management team are associated with the possibility of information security breaches. The results demonstrate that the average length and heterogeneity of tenure could increase the possibility of breaches. However, age heterogeneity and the size of the top management team are negatively related to such a possibility. In addition, the findings suggest a nonlinear association between average age and tenure and the possibility of security breaches. The authors conclude the chapter with theoretical and practical implications on the organizational and managerial aspects of information security management.


2017 ◽  
Vol 9 (1) ◽  
pp. 54-68
Author(s):  
William Kline ◽  
Masaaki Kotabe ◽  
Robert Hamilton ◽  
Stanley Ridgley

Purpose The purpose of this paper is to provide insights from the upper echelon, agency, and organizational identification literatures to help explain cross-cultural differences in top management team pay. Design/methodology/approach This is a theoretical paper building upon the executive compensation literature examining US and Japanese pay schemes. Findings The paper presents three propositions relating to the influence of organizational constitution and organizational identification on the level of pay, as well as the allocation of pay in top management team compensation schemes. Originality/value There is relatively little research focusing on why there are cross-cultural pay differences. This paper uses US and Japanese studies to highlight mechanisms that can foster principal-agent goal alignment in different contexts.


Sign in / Sign up

Export Citation Format

Share Document