The Association between Compensation Committee Quality and Directors' Excess Compensation

• Main Authors: WU,JIAN-YING, 吳建穎
• Other Authors: LEE, CHIA-LING
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/867z6g

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 105 === This study examines the relationships between compensation committee quality and directors' excess compensation. This study measures compensation committee quality using variables of compensation committee independence, compensation committee with overlapping more than three companies, the size compensation committee, professional background and overlapping audit and compensation committees. The sample is collected from Taiwan listed companies for the period of 2012 to 2014, which is excluded financial, insurance, securities and investment trust industries. The result indicated that the higher proportion of independent directors serve in compensation committee can reduce directors' excess compensation. The higher proportion of scholars serves in compensation committee can reduce directors' excess compensation. The higher proportion of overlapping membership on compensation and audit committees increases directors' excess compensation. In sum, this study finds compensation committee independence, professional background and overlapping membership on compensation and audit committees can enhance monitoring effects of compensation committee and set reasonable directors' compensation policies, and then improve the company's governance quality.