A Study of the Determinants of CEO Compensation in India

摘要: Abstract * The literature on CEO compensation is quite rich and varied given a very long research tradition. However, since most of these efforts have focused countries such as the US UK. Precious little known about determinants in outside developed western world. In attempting to fill this gap, study, set India, examines whether factors spread family controlled conglomerates governmental involvement private business an impact way which top executives are compensated. It provides first evidence important role government ownership corporate governance compensation. findings offer useful point reference against results from studies could be compared so develop more holistic theory pay. Key Results Similar that emerged country India was found positively related age organizational performance. unlike prior research, study negatively Further, it duality proportion insider directors had no significant bearing family-owned firms but did play key non-family organizations. ********** A stream has focussed antecedents consequences executive (2). Spanning diverse disciplines economics (e.g., Ciscel/Carroll 1980, Main 1991, Conyon/Gregg/Machin 1995, Ingham/ Thompson 1995), finance accounting Agrawal/Makhija/Mandelker Coughlin/Schmidt 1985, Ely Jensen/Murphy, 1990, Riahi-Belkaoui/ Pavlik 1993) strategic management Finkelstein/Hambrick 1989, Dalton/Kesner 1987, Rajagopalan/Prescott Gomez-Mejia/Balkin 1989) provided valuable insights into realm managerial While some researchers examined relationship between performance chief (Jensen/Murphy Gerhart/Milkovich 1990), others linked pay strategy suggesting fundamental nature organization's posture risk propensity, innovativeness, cost orientation (Balkin/ Gomez-Mejia Veliyath/Ferris/Ramaswamy 1994). Yet another group mix components salary, bonus, term stock options industry environments within function (Agrawal/Makhija/Mandelker 1991). Taken together streams inquiry reported highlight structure Agrawal/Mandelker Schleifer/Vishny 1986), board composition Boyd 1994, 1987), 1988), Rajagopalan/Finkelstein 1992), characteristics (Riahi-Belkaoui/Pavlik 1993), firm Jensen/Murphy Gerhart/ Milkovich 1990) determining Most rigorous empirical addressed issues, reflect distinct centered bias. Perhaps preponderance can partly traced recent activism among stockholders monitoring US, widespread popularity rankings generated by press, relatively easy access data for large corporations. Unfortunately, barring few exceptions UK Japan (Dalton/Kesner Ingham/Thompson Gregg/Machin/Szymanski 1993, 1991), foreign locations. paucity knowledge systems overseas especially worrisome considering direct investment MNEs (multinational enterprises) increased ten fold over past decade (Gomez-Mejia/Welbourne substantial portion been invested regions South/Southeast Asia, Latin America, Eastern Europe, all areas dominated fast growing developing economies. …