IE University

About: IE University is a education organization based out in Segovia, Castilla y León, Spain. It is known for research contribution in the topics: Corporate governance & Context (language use). The organization has 527 authors who have published 1709 publications receiving 64682 citations.

Shareholder Voting and Directors' Remuneration Report Legislation: Say on Pay in the UK

Abstract: Manuscript Type: Empirical Research Question/Issue: The paper investigates the determinants of shareholder voting and its relation to CEO pay in the UK. The context of the study is the Directors' Remuneration Report (DRR) Regulations of 2002. This legislation gave shareholders a mandatory non-binding vote on boardroom pay in the UK. Research Findings/Insights: First, we find that less than 10 per cent of shareholders abstain or vote against the mandated Directors' Remuneration Report (DRR) resolution. This percentage is falling over time. Second, investors are more likely to vote against DRR resolutions compared to non-pay resolutions. Third, shareholders are more likely to vote against general executive pay resolutions, such as stock options, long-term incentive plans, and bonus resolutions compared to non-pay resolutions. Forth, firms with higher CEO pay attract greater voting dissent. Fifth, there is little evidence that CEO pay is lower in firms that previously experienced high levels of shareholder dissent. In addition, there is little evidence that the fraction of CEO equity pay, representing owner-manager alignment, is greater in such firms. Currently, we find limited evidence that, on average, “say on pay” materially alters the subsequent level and design of CEO compensation. Theoretical/Academic Implications: The study provides new insights on shareholder voting and CEO pay. Theoretically, shareholder voting is endogenously determined. Practitioner/Policy Implications: The study provides insights for practitioners and policy makers interested in shareholder rights, the effects on corporate governance, and say on pay in the UK. Shareholder voting appears to have limited effects on curbing excess CEO pay. Boards and compensation committees may want to communicate better policies on executive compensation to avert shareholder dissent.

A Longitudinal Analysis of Positive Psychological Constructs and Emotions on Stress, Anxiety, and Well-Being

Abstract: Two studies were conducted including one involving a longitudinal research design to understand better the influential role of the positive psychological capacities of hope, efficacy, optimism, resilience, as well as positive emotions on individual stress, anxiety, and well-being. Study 1 (N = 1,316) was conducted to validate a hypothesized relationship between the positive capacities and well-being. Next, in Study 2 (N = 172), data were collected from participants at 12 points in time over 4 months and random coefficient modeling was used to test hypotheses between variables in a cognitive mediational theoretical framework. Results suggest positive psychological capacities can be a source of positive emotions. In addition, positive emotions and stress mediate the relationship between positive psychological capacities and well-being. A discussion of implications and future research conclude the article.

Does Stakeholder Management have a Dark Side

Abstract: This article is a first attempt to line out the conditions under which executives might have a real self-interest in pursuing a broad stakeholder management (SM) orientation to enlarge their power. We suggest that managers have wider latitude of action under an SM approach, even when this is instrumental to financial performance. The causally ambiguity of the performance effects of idiosyncratic relationships with stakeholders not only makes SM strategy difficult for competitors to imitate but also increases managerial discretion. When managers use this situation for their own benefit, they can undermine the purported goals of the SM approach. By analyzing some of the factors that might lead to such disfunctionalities, this article advances a theory of the potential dark side of SM.

Experience Matters? The Impact of Prior CEO Experience on Firm Performance

Abstract: We sample CEOs of the 2005?S&P 500 corporations to look at the relationship between experience in the CEO position of a different firm and the post-succession financial performance of the firm that they currently lead. We find that experience in the CEO position is negatively related to firm performance. CEOs who directly move to their current CEO position from the previous one and those with job-specific experience in the same or related industry or at the helm of a previous company similar in size to the current one are associated with significantly lower post-succession performance than those without prior CEO experience. The results contribute to the literatures on CEO succession, the performance effect of job-specific experience, and the transferability of human capital.