University of Canterbury Home
    • Admin
    UC Research Repository
    UC Library
    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    1. UC Home
    2. Library
    3. UC Research Repository
    4. UC Business School | Te Kura Umanga
    5. Business: Journal Articles
    6. View Item
    1. UC Home
    2.  > 
    3. Library
    4.  > 
    5. UC Research Repository
    6.  > 
    7. UC Business School | Te Kura Umanga
    8.  > 
    9. Business: Journal Articles
    10.  > 
    11. View Item

    Executive remuneration principles, practices and processes: an institutional logics perspective (2015)

    Thumbnail
    View/Open
    12659501_SubmissionToIJCG-AcceptedCopy.pdf (616.9Kb)
    Type of Content
    Journal Article
    UC Permalink
    http://hdl.handle.net/10092/11969
    
    Publisher's DOI/URI
    https://doi.org/10.1504/IJCG.2015.074693
    
    Publisher
    Inderscience Enterprises Ltd
    University of Canterbury. Department of Accounting and Information Systems
    Collections
    • Business: Journal Articles [311]
    Authors
    Crombie, N.A.
    show all
    Abstract

    Agency logic assumes that executives are greedy and opportunistic, which implies that monetary incentives are necessary to ensure they act in the best interests of shareholders; whereas corporate logic assumes that executives are trustworthy professionals, which implies that they will act in the best interests of shareholders irrespective of the use of monetary incentives. Prior qualitative research on executive remuneration is reviewed in this paper in order to ascertain how these logics influence the decision making of remuneration committees. Given that agency logic and corporate logic are opposites, there is a tension between the remuneration principles of pay-for-performance and competitive pay. However, corporate logic trumps agency logic as remuneration committees prioritise competitive pay ahead of other principles, so that talented executives will be retained. The paper also discusses a range of other remuneration principles and practices as well as the remuneration processes that have diffused both logics amongst remuneration committees.

    Citation
    Crombie, N.A. (2015) Executive remuneration principles, practices and processes: an institutional logics perspective. International Journal of Corporate Governance, 6(2/3/4), pp. 98-140.
    This citation is automatically generated and may be unreliable. Use as a guide only.
    Keywords
    Corporate Governance; Executive Compensation; Compensation Committees; Institutional Theory; Institutional Logics Perspective
    ANZSRC Fields of Research
    15 - Commerce, Management, Tourism and Services::1503 - Business and Management::150303 - Corporate Governance and Stakeholder Engagement
    Rights
    https://hdl.handle.net/10092/17651

    Related items

    Showing items related by title, author, creator and subject.

    • An Institutional Logics Perspective on Executive Remuneration in Anglo-Saxon Countries 

      Crombie, N.A. (University of Canterbury. Department of Accounting and Information Systems, 2013)
      Purpose: Corporate Logic and Investor Logic are the two dominant institutional logics of corporate governance in Anglo-Saxon countries (Lok, 2010; Zajac and Westphal, 2004). Corporate Logic portrays executives as trustworthy ...
    • Institutional Logics of Corporate Governance 

      Crombie, N.A. (University of Canterbury. Department of Accounting and Information Systems, 2011)
      Purpose: Zajac and Westphal (2004) argue that there are two institutional logics of corporate governance: Corporate Logic and Investor Logic. This paper examines how Corporate Logic and Investor Logic are embedded in public ...
    • Remuneration Logics: How Large U.S. Firms Justify Ceo Pay 

      Crombie, N.A.; Alam, S.; Tan, V. (University of Canterbury. Department of Accounting and Information Systems, 2010)
      Purpose: The legitimacy of CEO pay in large U.S. firms has been repeatedly challenged in first decade of the 21st century. However, increases in CEO pay have continued to outpace corresponding changes in firm size and ...
    Advanced Search

    Browse

    All of the RepositoryCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThesis DisciplineThis CollectionBy Issue DateAuthorsTitlesSubjectsThesis Discipline

    Statistics

    View Usage Statistics
    • SUBMISSIONS
    • Research Outputs
    • UC Theses
    • CONTACTS
    • Send Feedback
    • +64 3 369 3853
    • ucresearchrepository@canterbury.ac.nz
    • ABOUT
    • UC Research Repository Guide
    • Copyright and Disclaimer
    • SUBMISSIONS
    • Research Outputs
    • UC Theses
    • CONTACTS
    • Send Feedback
    • +64 3 369 3853
    • ucresearchrepository@canterbury.ac.nz
    • ABOUT
    • UC Research Repository Guide
    • Copyright and Disclaimer