Stock options: do they influence dividend payments?

Purpose This study aims to investigate whether there is any influence of the option plan to purchase shares protected from dividends to determine the distribution of dividends in Brazilian companies. Design/methodology/approach The authors used a Tobit dynamic and regressive regression model because their sample has an index higher than 30% of companies that do not pay dividends. The sample includes companies that pay dividends or not and pay their executives with executive stock option plans and is composed of 1,990 observations from 356 companies from 2010 to 2016. Findings The results indicated that the presence of a dividend protection clause has a positive association with the distribution of dividends. The authors sought to clarify that companies with a stock option plan protected by the distribution of dividends face fewer restrictions on the distribution of dividends. The authors found that most companies still use only stock options to benefit middle-ranking positions and fit the plan in their remuneration policy. The monitoring of these plans lasts an average of seven years, and specific acquisition conditions are not established with their beneficiaries, who must remain in the company and observe performance metrics. Originality/value This study is relevant because the relationship between dividends and stock options has not yet been analyzed in Brazil, especially concerning a dividend-protected option plan, which is a relatively recent modality, even unknown to some companies.

Structure of Remuneration as Assessed by Employees of the Energy Sector—Multivariate Correspondence Analysis

Remuneration policy is an element of company management. Remuneration systems should be flexible and evolutionary. They must consider not only the changes in the external environment but, most of all, the changing needs of the internal environment. In practice, this means aligning the company’s strategy and goals with the remuneration system. What is more, the remuneration policy must be consistent with all personnel substrategies, which should systematically create integrated human capital management. The aim of our research was to determine how employees perceive the appropriate structure of remuneration and how the relationships between the elements that make up the structure of remuneration are perceived. Energy sector employees were selected for the study, dividing the group of respondents by gender, age and level of education. The obtained data were submitted to multivariate correspondence analysis. The analysis of the perception map for the variables of gender, age and education, as well as the subjective assessment of the components of remuneration, allows the general assertion that both men and women believe that the amount of the fixed part of remuneration should be influenced by such elements as: work efficiency, education, seniority in the current place of employment, position in the hierarchy of the position held, as well as the level of salaries in the labor market. But people aged 60 and over with a vocational education tend to believe that the amount of the fixed part of remuneration should be influenced by collective agreements. Moreover, people aged 25–34 with higher education believe that the granting of additional benefits should not be affected by collective labor agreements.

13. Specific conflicts—CA 2006, Part 10, Ch 4, and Ch 4A

This chapter considers provisions of the Companies Act 2006 (CA 2006), Pt 10, Ch 4, and Ch 4A. These provisions regulate transactions with directors where there is an acute conflict of interest between the director’s personal interests and his duty to the company and so, typically, the statute requires prior shareholder approval of the transaction. The relevant provisions address: directors’ service contracts (CA 2006, ss 188–189); payments for loss of office (CA 2006, ss 215–221); for quoted companies (which must have a directors’ remuneration policy)—remuneration payments and payments for loss of office (Ch 4A); substantial property transactions (CA 2006, ss 190–196); and loans and similar financial transactions (CA 2006, ss 197–214).

The Impact of Remuneration Policy on Increasing Lecturer’s Motivation and Performance at Padjadjaran University

The remuneration policy in the higher education institution is a manifestation of the responsibility of the management leadership in providing awards in the form of additional income with the aim of improving the performance of lecturers. The reform of the lecturer salary payment system became effective in the 2015. This paper attempts to examine the impact of remuneration policies on the motivation and performance of lecturers. This study aims to analyze the positive impact of remuneration policies in an effort to increase the motivation and performance of Padjadjaran University lecturers. This research uses descriptive qualitative method. Research data collection is done through in-depth interview techniques and literature study. Informants in this research are Padjadjaran University management leaders and staffs and Padjadjaran University lecturers. This study uses a three-step data analysis technique, which consists of the process of reducing research data, displaying data and drawing conclusions. The conclusion from this research is that the remuneration policy has a significant impact on efforts to increase the motivation and performance of Padjadjaran University lecturers, with the fulfillment of both intrinsic and extrinsic factors which have a main role in efforts to increase the motivation of lecturers to always try to improve their performance.

TRANSPARENCY OF INFORMATION – IMPORTANT MANAGEMENT INSTRUMENT IN ENSURING PERFORMANCE AND DEVELOPMENT OF CORPORATE GOVERNANCE

The degree of transparency of an entity is assessed according to the entity’s policies, control environment and access conditions of the various categories of stakeholders. Modern corporate governance determines the entity to adapt to the new market conditions, promoting a sustainable evolution in conditions of maximum transparency. In ensuring sustainable development, management must model its resources in such a way that the cost does not exceed the price and, at the same time, give credibility to stakeholders that the entity will reap long-term benefits. Performance means the most appropriate tools for translating financial and non-financial information into the entity’s successful language in a sustainable way. Promoting transparency in the decision-making process involves placing on the entity’s website information on the structure of corporate governance, risk management, internal audit and internal control, the company’s remuneration policy, the performance appraisal system and the budgetary system.

The New EU Remuneration Policy as Good but Not Desired Corporate Governance Mechanism and the Role of CSR Disclosing

The recent global financial crisis (GFC) has put under scrutiny the sound remuneration policy and consequently the incentives design that influences risk-taking by managers in the banking industry to be a politically charged variable. In particular, this paper analyzes the new EU remuneration regulation of bank executive compensation and the role of corporate social responsibility (CSR) on this. Though all the EU efforts put into remuneration practices suggest commitment in aligning risk, performance, and compensation and aim at easing bank managers’ risk appetite for variable payments, the new regulation might drive unintended consequences, creating adverse selection problems in EU banks and hidden compensation habits that lower transparency, thus threatening financial system’s sustainability. Focusing on European Banking Authority (EBA) reports spanning from 2010 to 2017, the data reveals increasing values on the fixed component, less involvement in bank discipline by economic agents, and a potential for accounting-based incentives compensation that might reinforce attitudes towards building countercyclical buffers and smoothing earnings. As well, the new regulation might reduce the number of best-performing bank managers in the Eurozone, since “bad risks” are accepted to the detriment of “good risks,” which might stimulate their migration. In contrast, CSR investment is supposed to offset such practices and incentives that harm EU financial stability. As a result, policymakers, banks, and regulators should promote the transparency of CSR disclosure.

Pengaruh Remunerasi dan Motivasi terhadap Kinerja Tenaga Administrasi PNS dan Non PNS Universitas Brawijaya

Remuneration policy is born in order not to occur the overlap of income between education, where previously the education of civil servants more income and have more activities than with permanent education Non PNS. This research aims to analyse partial remuneration influence and partial motivation, then the simultaneous influence of remuneration and motivation to the performance of civil servants and non-civil servants at the Faculty of Computer Science of Brawijaya University. This research uses quantitative methods with the method of data collection in the form of a questionnaire. Method of data analysis using SPSS Vr. 24 program. Based on the results of the research came the conclusion that the results of the hypothesis test Fcountdown > Ftabel is 22,976 > 3,204 significance F of < Alpha (0,000 < 0,05) remuneration significantly affects the performance of employees, while motivation also significantly affects the performance of employees.

The Greek paradigm of corporate governance and board of directors

Corporate governance encompasses a multidisciplinary approach, which includes the internal and external factors that affect the interests of a company’s stakeholders. The Greek corporate governance framework of listed companies has initially been established in accordance with EU regulation and soft law recommendations, in order to enhance board accountability and transparency, empower shareholders’ activism and promote financial disclosure. In that regard, it has recently been reformed by the provisions of Law 4706/2020, aiming mainly: to empower the strategic and supervisory role of the board of directors, by introducing a clear description of the obligations of non-executive and independent non-executive directors and by including the establishment of an “adequacy (internal fit-and-proper) policy” for the appointment of board members. Accordingly, two new compulsory committees are added, the nomination and the remuneration committee, which should entirely be composed by non-executive members and are invested with an advisory role in determining the remuneration policy and proposing board candidates. Furthermore, the adoption of a Corporate Governance Code is rendered substantial for all listed companies. These provisions illustrate specifically the reform of the internal corporate governance structures, which should be implemented having regard to the general principles of transparency and proportionality