Naslov
An exploration of executive compensation in Croatia - what are its implications within corporate governance?

Autori
Načinović, Ivana

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni

Izvornik
Proceedings of the 1st International Conference “Corporate Governance – new experiences: Implementation in South Eastern Europe” / - Zagreb : Ekonomski fakultet Sveučilišta u Zagrebu, 2011

Skup
1st International Conference “Corporate Governance – new experiences: Implementation in South Eastern Europe”

Mjesto i datum
Zagreb, Hrvatska, 03.11.2011. - 04.11.2011

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
executive compensation; corporate governance

Sažetak
Management board members’ compensation packages include several forms of compensation, most likely: base pay, short term incentives, long term incentives and benefits with the relative proportions of the individual components differing among the national economies and corporate governance systems. Executive compensation packages are ranging from US example with equity-based stock option compensation dominating in compensation packages while counting for more than ¾ of the compensation package (Bottano & Miller, 2007) and countries that adopted egalitarian approach to compensation, such as Sweden were only 42% of the firms pay out bonuses whereas stock options were used by 44% of firms (Randøy & Nielsen, 2002). Developing practice of CEO and director pay in South-Eastern Europe needs to be positioned within the global practice of executive compensation. Although market changes provoked general changes in compensation practice in these countries in the last two decades, general empirical research on compensation issues is pretty scarce. Executive compensation in post-transition economies of South-Eastern Europe is an under-researched topic due to status of classified data assigned to all compensation issues. Unlike in countries with Anglo-American system of corporate governance, continental system of corporate governance does not have in-law prescribed full transparency of compensation issues. Limited indication of executive pay strategies within European countries is provided by multinationals that opt for public disclosure of CEO pay amounts in order to comply with their home regulation. Alternate sources of data include consulting firms, such as for Eriksson (2005) study on Czech and Slovak CEO pay. The purpose of this paper is twofold. The first part of the paper presents a detailed empirical analysis of executive compensation practice within public limited companies in Croatia. This is followed with available evidence on executive compensation in South-East Europe. The paper concludes with a discussion aiming to challenge the critical role(s) of executive compensation in corporate governance in South-Eastern Europe, especially in comparison to Anglo-American system of corporate governance. The empirical part of this paper is based on a questionnaire research conducted among management board members of the public limited companies listed in Zagreb Stock Exchange in the period from December 2010 to February 2011 at a response rate of 18, 44%.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA