2015

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Browsing 2015 by Author "Ejaz Aslam"

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    Executive director's remuneration and firm performance in pakistan
    (UMT, Lahore, 2015) Ejaz Aslam
    Issues on the suitableness of executive director's remuneration packages have gotten a regularly increasing profile in recent years. While there has been quite in depth extensive empirical investigation of pay-performance sensitivity, the framework of performance-pay has received less attention within the literature. In this context, the present study makes a twofold contribution to the examination of executive directors' remuneration of 50 non-financial firms from KSE ICQ index. First and foremost, this analysis aims to empirically investigate the linkages between interrelationships between pay and performance over a six year period from 2008 to 2013. Inside the extent of a mixture of hypothetical perspectives, this deductive study puts an attention on tending the question of what there an interrelationship between executive directors' remuneration and firm performance? Overall the present study utilizes deductive methods approach via quantitative modes of analysis - an approach that is comparatively rare in order to examination into corporate governance and related issues. The results from the experimental work show confirmation of the vicinity of double positive relationship between executive director's remuneration and fiim performance. However, the outcomes signify that executive director's remuneration is more compelling in its impact on finn performance than the framework of performance related pay. This finding of the study are support to the stewai^dship and tournament theories as to basic drivers of compensation in examination with agency theory, drawn by the agent perspective or administrative authority viewpoints, as an infoiTnative of the development of executive compensation and the connection with finn perfonnance. On the other hand, the outcomes demonstrated that the presence of D compensation committee nomially as a rule uncovers unimportant and eontrarily identified with aggregate CEO/executive eompensation. This discovering highlights aceordingly the need to put an attention on the genuine part of remuneration committee in setting the sort and degree of official pay packages in a substantial Pakistan organization. In conclusion, the findings of the current study give and abundance of insight concerning the quantitative as to the way in which executive's remuneration has been set in the Pakistan as of late and as to linkages both with company perfonnance and underlying theories of the detenninants of exeeutive remuneration. Accordingly it reveals insight into a zone of significance and one of proeeeded with public and private coneem and may be of interest to those liable for governance inside firms and to more extensive public and regulatory interest and in addition as future researcher within the field.