| Summary: | 碩士 === 國立成功大學 === 財務金融研究所在職專班 === 101 === A firm establishes a remuneration committees to create good corporate governance and futher to enhance its value. The purpose of the remuneration committee is to designate reasonable compensation of directors and senior managers for effectively restraining the total compensation and for protecting shareholders’ interests. This study applies the relationship between performance metrics and establishing the compensation committee to investigate whether the manager’s compensation is likely to be influenced by the performance. I find that a firm’s performance is positively related with its compensations of senior managers. Besides, the results show that the remuneration committee may promote the compensation-performance sensitivity indicating the company CEO compensation will be affected by the performance indicators, in particular, the establishment of the remuneration committee would increase the company's senior managers pay and performance sensitivity. Accordingly, my study indicates the effective remuneration committee may induce appropriate performance-based compensation to reduce the controversial ‘fat cats’ problems.
|
|---|
