A Study on the Current Situation and Benefit of Implementation by Compensation Committee

• Main Authors: FENG-LAN HUANG, 黃鳳蘭
• Other Authors: SHU PING LIN
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/00227776158394459290

碩士 === 中華大學 === 科技管理學系碩士在職專班 === 100 === Since 1998, the competent authorities have begun to advocate the importance of corporation governance for listed companies. After financial tsunami in 2008, the fat cat problem arose and the public questioned the disproportionation of compensations for board members and managers agreed by board of directors to corporation’s operating performance that might compromise the investors’ interest. Hence the mandatory creation of compensation committee has become an important event in the implementation of corporation governance for listed and emerging companies in recent days. However, the equities of domestic corporations are mostly controlled by big shareholders or families. The effectiveness of implementation of compensation committee remains to be seen. In light of such situation, the study aims to explore the implementation and the benefit cognition of creation of compensation committee in company with a hope that the results of analyses could be a reference and indicator for follow-up related researches. With a listed company of manufacturing electronic components as an example and through the questionnaire surveys, this study used descriptive statistical and analytical method to analyze. We found: (1) the effectiveness of corporation governance and the position of board of directors had been positively affirmed and recognized by the employees; (2) the employees did not fully agree with the functions and expected benefits; (3) the employees in the case company gave compensation committee a positive assessment, but the degree of recognition of its implementation performance stayed at lower acceptable level; and (4) the significant differences of the views on compensation committee by the employees of different backgrounds only existed between different genders and marital statuses, and the married argued that the implementation performance was poor. The rest did not show significant difference.