Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.3/222367

Title

Linking executive remuneration with performance: an assessment of Australian companies during financial crisis

Author(s)

Azim, Mohammad;  Mei, Joyce Chua Ai

Abstract

In recent years, criticism has focused on the apparent lack of relationship between remuneration paid to directors and company performance. This research aim to investigate the relationship between Australian directors' remuneration and their companies' performance, particularly during this recent financial crisis. The sample of this research is taken from Top 200 companies listed on ASX based on their market capitalization. To better understand the relationship of the variables, this research used three approaches. The first approach is to investigate the pay to performance relationship during the global financial crisis. The second approach is to examine the relationship between directors' remuneration and company performance one year before and after the crisis and use these findings to compare with those of during the crisis. The third approach is lead and lag analysis. Overall, this research found a positive and significant relationship between directors' remuneration and company performance during the global financial crisis, with higher sensitivity to market based performance measures than accounting based performance measures.

Publication type

Book

Publication year

2011

FOR Code(s)

150102 Auditing and Accountability;  150103 Financial Accounting;  150199 Accounting, Auditing and Accountability not elsewhere classified

Keyword(s)

Australia;  Company performance;  Directors;  Executives;  Global Financial Crisis;  Renumeration

Publisher

VDM Verlag

ISBN

9783639354997, 3639354990

Publisher URL

http://www.vdmpublishinggroup.com/

Copyright

Copyright © 2011 by the author and VDM Verlag Dr. Muller GmbH & Co. KG and licensors. All rights reserved.