Showing papers on "Remuneration published in 1996"
TL;DR: In this paper, the authors combine the long-term share option component of pay along with the more commonly utilized short-term component of emoluments to reveal executive pay as being significantly more sensitive to company performance than has previously been thought to be the case.
Abstract: Using a hitherto neglected source of data, this paper combines executive emoluments with executive options to construct a broader measure of executive pay than has been possible in earlier British studies. The result of including the long-term share option component of pay along with the more commonly utilized short-term component of emoluments is to reveal executive pay as being significantly more sensitive to company performance than has previously been thought to be the case. The paper questions the current policy stance of British institutional investors and of the Greenbury Committee with respect to executive share options. Copyright 1996 by Royal Economic Society.
266 citations
TL;DR: In this paper, the authors examined the meaning of empowerment and the implementation of specific initiatives and suggested empowerment has limitations and tensions including little power dissemination, close control over employees, poor prospects of extra remuneration and job insecurity.
Abstract: Given the widespread introduction of empowerment within the UK, this article examines meanings of the concept and the implementation of specific initiatives. From a study of thirteen organisations it is suggested empowerment has limitations and tensions including little power dissemination, close control over employees, poor prospects of extra remuneration and job insecurity.
153 citations
TL;DR: In this article, the relationship between job satisfaction levels and the remuneration of non-owner managers employed by a sample of 97 UK small and medium sized enterprises (SMEs) is investigated.
Abstract: The relationship between job satisfaction levels and the remuneration of non-owner managers employed by a sample of 97 UK small and medium sized enterprises (SMEs) is investigated. The main empiric...
114 citations
TL;DR: In this paper, the authors explore the determinants of chief executive compensation in Norwegian stock exchange listed firms and show a positive relationship between CEO pay and corporate size but there was no significant association between remuneration and corporate financial performance.
Abstract: Economics and management literatures advocate that senior company executives should be remunerated on the basis of the financial performance of the firms they manage. This helps align the interests of management with those of stockholders. There are, however, problems in implementing pay for performance schemes and these, along with other factors, may lead to there being no empirical relationship between compensation and stockholder returns. This study set out to explore the determinants of chief executive compensation in Norwegian stock exchange listed firms. To date there have been very few studies on this topic using data from Norway; most previous research has employed American data. The results show a positive relationship between CEO pay and corporate size but there was no significant association between remuneration and corporate financial performance as measured by accounting profitability and as measured by stock returns. Estimates of the value added by companies were significantly related to chief executive pay. There was also a positive and significant relationship between a CEO's compensation and the average wage level of the company. This association may be due to the unique characteristics of Norway's social and economic structure.
50 citations
01 Jan 1996
TL;DR: In this paper, the authors highlight the need for policy makers and educators to reconsider their approach towards education and highlight the imperatives that are above and beyond the possibilities of their being addressed simply within the confines and time-scales of traditional patterns of learning, and the front on the provision of education & training.
Abstract: Across the world a number of trends in economic and social change has highlighted the need for policy makers and educators to reconsider their approach towards education. Factors such as the changing nature and patterns of employment, population and demographic change, labour force participation rates, changing types of jobs and their availability, changes in workplace skills and competences, technological change, the question of wages and remuneration, and globalization — have all set up a series of imperatives that are above and beyond the possibilities of their being addressed simply within the confines and time-scales of traditional patterns of learning, and the ‘front on’ provision of education & training.
49 citations
TL;DR: In this paper, the authors examined the effects of incentives in employee remuneration on financial performance in a sample of Chinese state-owned enterprises (SOEs) during the late 1980s and early 1990s.
Abstract: This paper examines the effects of incentives in employee remuneration on financial performance in a sample of Chinese state-owned enterprises (SOEs) during the late 1980s and early 1990s. The estimates show that bonus payments as a form of profit-sharing between employees and the state have positive effects on both the total factor productivity and profitability of the sample SOEs. Moreover, the actual level of bonus payments is found to be lower than the optimal level which a competitive firm would set to maximise profits. These results suggest that profit-sharing introduced in Chinese state-owned enterprises as one of the centrepieces of economic reforms over the last decade has been effective.
42 citations
TL;DR: In this article, a model is introduced to estimate the extent to which pay and its determinants are related, based on a net sample of 90 large UK firms, and salary was found to be strongly related to firm size, as opposed to annual bonus which was modestly associated with both firm performance and size.
Abstract: This study extends prior research by separating executive remuneration into salary and annual bonus for the purpose of empirically verifying their determinants. A model is introduced to estimate the extent to which pay and its determinants are related. Based on a net sample of 90 large UK firms, salary was found to be strongly related to firm size, as opposed to annual bonus, which was modestly associated with both firm performance and size. An important discovery was that salary showed no relationship to a firm's economic performance. The inability to find any association between salary and performance suggests that each component of pay has a different set of determining factors.
36 citations
TL;DR: A critical review of different systems of remunerations of pharmacists which exist in various countries, to what extent each system can contribute to public policy objectives and whether it may be time to shift the valuation of pharmaceutical services towards more safe and effective therapy instead of safe andeffective drugs.
32 citations
TL;DR: Empirical findings from the non‐interacting research literatures of economics and information science are brought together to make the case for using citation rates as a valid and cost‐effective proxy for quality in certain disciplines.
Abstract: Research shows that the rates of return to citation are substantial in the context of the academic reward system. Since quantitative performance measures, notably publication and citation counts, are associated strongly with life‐cycle remuneration and career mobility, both should be utilised in research assessment exercises. This paper brings together empirical findings from the non‐interacting research literatures of economics and information science to make the case for using citation rates as a valid and cost‐effective proxy for quality in certain disciplines.
32 citations
TL;DR: In this paper, the authors model the financial remuneration to vice chancellors and principals at UK higher education institutions and present alternative theoretical underpinnings for the determination of pay, an earnings function is estimated utilizing institutional and personal characteristics.
Abstract: This paper models the financial remuneration to vice chancellors and principals at UK higher education institutions. After describing the alternative theoretical underpinnings for the determination of pay, an earnings function is estimated utilizing institutional and personal characteristics. The model suggests only a partial linkage of managerial and performance-related indicators to remuneration levels. This suggests substantial scope for reorientation of rewards towards such indicators rather than relying on an efficiency wage. This would appear particularly appropriate given the present and continued disclosure of this information, together with the increased focus on performance indicators relating to teaching and research within the UK higher education sector.
31 citations
01 Jan 1996
TL;DR: Work is seen as the primary condition for belonging to society as discussed by the authors, and it has been argued that having work is an appropriate vehicle for personal fulfilment or primarily the means to an end, and if remuneration was removed whether fulfilment would continue to depend exclusively on work.
Abstract: Considers the role of work in society, tracing the historical process by which it dominates individual and social time and space and examines how the concept of work has developed since the eighteenth century. Looks at how work has formed the basis of the social contract, and that having work is seen as the primary condition for belonging to society. Debates whether work is an appropriate vehicle for personal fulfilment or primarily the means to an end, and that if remuneration was removed whether fulfilment would continue to depend exclusively on work. Addresses the economic view that increasing production is good in itself in meeting unsatisfied needs, arguing that growth indicators and welfare indicators become confused and inappropriately combined; comments on the beliefs of a number of economists such as Smith, Marx and Hegel. Concludes with a discussion centred around the notion of a fully active society by which everyone should have access to political, productive and cultural activities in addition to private activities involving friendship, family and emotional ties and the concept of full employment.
TL;DR: In this paper, the authors consider the career patterns of male and female accountants and find that male accountants are more likely than female accountant to follow a continuous linear path and that this type of career path has higher remuneration levels.
Abstract: It has been argued by Lepine (1992) and others that certain distinct career patterns are typical of the careers of women managers and that these may not correspond to a typical male model of a continuous, linear progression. Considers the career patterns of male and female accountants. It shows that male accountants are more likely than female accountants to follow a continuous linear path and that this type of career path has higher remuneration levels. This may partly explain differences in salary levels between male and female accountants but does not explain differences in salary levels found within particular career patterns. Assesses the effect of this cultural emphasis on those, both men and women, whose careers exhibit different characteristics.
TL;DR: In this paper, a study of two small localities in rural West Bengal between 1991 and 1993 suggests that the poorest workers receive the lowest remuneration across a range of informal contracts, including daily time-rate, piece rate, seasonal beck-and-call and migrant labour arrangements.
Abstract: There are two main arguments in this article. First, if wages and employment are to be used as indicators of changing levels of rural poverty they need to be complemented by micro and meso level studies of how increases or declines in wages and employment are distributed among individuals and households. Secondly, if the nature of the relationship between employer and labourer is to be understood, aggregates such as ‘casual’ labour need to be unravelled. Evidence from a study of two small localities in rural West Bengal between 1991 and 1993 suggests that the poorest workers receive the lowest remuneration across a range of informal contracts, including daily time‐rate, piece rate, seasonal beck‐and‐call and migrant labour arrangements. Levels of remuneration are also determined by locally specific ideologies of gender and social rank and by party politics.
TL;DR: In this article, a multi-task principal-agent problem is used to explain why managers of firms seem to pursue policies such as protection which are probably not in the overall interests of the diversified owners of the firms.
TL;DR: In this paper, the authors discuss the recommendations of the Greenbury Committee on the remuneration of directors in public companies and suggest that progress in implementing them should be monitored, given the importance of Greenbury proposals.
Abstract: Discusses the recommendations of the Greenbury Committee on the remuneration of directors in public companies. Specifically comments on the following issues: the establishment, membership and status of remuneration committees in public companies; the determination of remuneration policy for executive directors; the disclosure and approval of the details of remuneration policy; the length of service contracts and the determination of compensation when these are terminated. Suggests that progress in implementing them should be monitored, given the importance of the Greenbury proposals.
Abstract: This article reports new research on price promotions in grocery products. The results are striking and taken with other evidence they suggest that few consumers benefit from deep-discount price promotions. The study raises big questions about how manufacturers and retailers allocate their marketing budgets - and even about whether companies' management accounting and remuneration practices may be leading to reduced profits.
TL;DR: In this paper, the authors present an econometric analysis demonstrating that the developmental potential of the oil industry and the consequences for policymaking can be fully grasped only when proceeds are divided into those derived from remuneration for the natural resource (ground rent) and those resulting from productive activity (profits).
Abstract: Venezuela began to export oil in 1917. Almost immediately, as the owner of the natural resource it began to claim its right to receive fair remuneration. This objective was achieved through a historical process that lasted six decades and culminated in nationalization (Mommer, 1988a). It is possible to distinguish two stages in this process; their respective characteristics will be outlined in the first part of this article. The second part will present an econometric analysis demonstrating that the developmental potential of the oil industry (and the consequences for policymaking) can be fully grasped only when proceeds are divided into those derived from remuneration for the natural resource (ground rent) and those derived from productive activity (profits).
TL;DR: In this article, the authors present a case study of a company where a new element of the company remuneration package was implemented based on a central philosophy of employee involvement and team problem solving.
Abstract: Analyses a communication exercise within a case study company. The exercise is in preparation for the implementation of a new element of the company remuneration package which was to be based on a central philosophy of employee involvement and team problem solving. The communication programme took place over a six‐month period, and the research was conducted three months into this timescale and followed up two months after the introduction of the new payment scheme. Explicit information was conveyed downwards by senior management, and also employees were invited to contribute their ideas to the new scheme. Employees were wary and appeared to distort information based on their experiences of recent company history, their perception of the “trust” relationship between themselves and senior management, and events which took place during the exercise. The workforce appeared not to want to take ownership of the new element of the remuneration package until experience had given them an indication of a positive result. Ultimately, the communication exercise was assisting in the creation and development of a new form of shared organizational language.
TL;DR: In this paper, the authors place the remuneration of professional athletes within the wider context of the entertainment industry and explain athletes' salaries from the standpoint of labor supply and demand and investment in human capital.
Abstract: Many fans in the United States are increasingly distressed by the fact that spectator sports, one of their favorite recreational activities, are just another commercial enterprise. They attribute this state of affairs to the greed of professional athletes, a charge they often make without any understanding of the concept of economic rent, a major component of the salaries received by those who play professional sports. This note demonstrates the relevance of the principle of economic rent to the salaries paid professional athletes. The paper places the remuneration of professional athletes within the wider context of the entertainment industry and explains athletes' salaries from the standpoint of labor supply and demand and investment in human capital. It addresses the issues of monopoly and monopsony and the existence of quasi-rents in the short run and pure economic rent in the long run. The paper ends by noting the key role derived demand plays in determining the salaries of professional athletes. Iro...
Journal Article•
TL;DR: The real challenge is to achieve flexibility and balance in any payment system to correct the prevailing gross inequities between different areas of practice and to ensure that disincentives for activities such as health promotion and health service evaluation are eliminated.
Abstract: Although fee-for-service payment may create an incentive for some physicians to make inappropriate clinical decisions that will maximize income, physicians are no more prone to this kind of behaviour than other professionals. Remuneration methods do not necessarily have a predictable effect upon practice, as shown by Hutchison and associates9 report in this issue (see pages 653 to 661) that the capitation system used by Health Service Organizations in Ontario has not had the intended effect of reducing hospital utilization. However, many essential activities performed by physicians do not fit in a fee-for-service system. The real challenge is to achieve flexibility and balance in any payment system to correct the prevailing gross inequities between different areas of practice and to ensure that disincentives for activities such as health promotion and health service evaluation are eliminated.
TL;DR: The gap between SHRC members' evaluations of the Centers and the Center guidelines is examined, finding that new policy directions do address many members' concerns, but do not attempt to question or change the status quo of the gendered division of labor in Japanese society.
Abstract: The Silver Human Resource Centers (SHRC) were first established in 1980 to address the economic and psychological needs of Japan's growing numbers of senior citizens. The Centers, through which people are introduced to jobs in their locales and from which they receive remuneration for services performed, are by now well established throughout Japan. This article examines the gap between SHRC members' evaluations of the Centers and the Center guidelines, as stated in their published literature and in interviews with program administrators. The analysis is fourfold: (1) it explores the members' reasons for participating in the program; (2) it discusses their assessments of it; (3) it examines gender and social class differences in program planning and participation; and (4) it analyzes the Ministry of Labor's plan for new directions for the Centers. Although new policy directions do address many members' concerns, they do not attempt to question or change the status quo of the gendered division of labor in ...
TL;DR: Results suggest that doctor-nurse substitution would be cost-effective for general practice based cervical screening, and a more graduated incentive payment scheme may more fairly reward practices in deprived areas which are less likely to achieve 80% uptake due to relatively intractable features of practice structure.
Abstract: Objectives To investigate associations between costs and remuneration for cervical screening in general practice in relation to skill mix, features of practice structure and deprivation levels in the local area; and, to identify efficient policies for organising cervical screening in general practice. Method Questionnaire survey and interview study in 87 general practices in Greater Glasgow Health Board an area in the west of Scotland which covers a socio-economically varied population. The main outcome measures were remuneration to cost ratios (RCRs) for cervical screening and their natural logarithms (logRCRs). Results Both the costs of cervical screening and RCRs varied widely between the 87 practices taking part. RCRs ranged from 0.29 to 14.67 (mean 2.64, median 2.18, interquartile range 1.15-2.98). Twenty-one per cent (18) of practices earned less than they spent on the organisation of screening, whilst 9% (8) of practices had PCRs of more than 5:1. RCRs were significantly lower if medical staff were involved in either taking smears or dealing with results. RCRs did not vary by social deprivation score, despite uptake being lower in practices in more deprived areas. This was explained by nurses working in practices in deprived areas being more likely to take smears than nurses working in more affluent areas. Sensitivity analyses were undertaken, altering key time and cost assumptions. As a result, the absolute values of the RCRs changed, although the overall pattern of association did not, with the exception of doctor involvement in processing results which was no longer significant when average general practitioners' income was substituted for locum rates. Conclusions Practices in deprived areas may be responding to greater pressure of work by making optimal use of skill mix within the primary health care team. A more graduated incentive payment scheme may more fairly reward practices in deprived areas which are less likely to achieve 80% uptake due to relatively intractable features of practice structure. Assuming that practice nurses provide an equivalent quality of service to that provided by general practitioners, results suggest that doctor-nurse substitution would be cost-effective for general practice based cervical screening. Resource savings (principally doctor's time) could be redeployed to other areas of primary health care.
TL;DR: The danger lies in assuming that this way of giving employees fatter pay packets without a balancing package of long-term, customer focused measures, will act as an incentive and succeed in driving longterm performance improvement as discussed by the authors.
Abstract: While the limitations of basing performance measurement on short-term, financial measures are widely appreciated, some manufacturing companies are beginning to consider profit related pay as part of their remuneration strategy. The danger lies in assuming that this way of giving employees fatter pay packets without a balancing package of long-term, customer focused measures, will act as an incentive and succeed in driving long-term performance improvement.
TL;DR: The Medical Corps of the Israel Defence Forces went about choosing a reimbursement method to increase incentives for dentists and decrease waiting time for the public, and a new method of remuneration was suggested and accepted.
Abstract: The behaviour of health care professionals is known to be influenced, in part, by their method of remuneration and the financial incentives they face. Describes how the Medical Corps of the Israel Defence Forces (IDF) went about choosing a reimbursement method to increase incentives for dentists and decrease waiting time for the public. Based on a questionnaire sent to all 23 dentists working in a unique IDF civilian dental clinic, and on other information which was available on the productivity and income of these dentists, a new method of remuneration was suggested and accepted, by which a combined method of fee‐for‐service and salary will be introduced. The base hourly pay and per crown fee were set on levels which provide for a larger compensation range and increase the incentive for improved productivity levels. This suggested method will be investigated further and re‐evaluated one year after its implementation.
Journal Article•
TL;DR: In this article, the authors explore the extent to which the present system contributes to the industry's problems and suggest a modest, practicable approach which would build on the existing legal framework using recent advances in international trade law.
Abstract: While most of the factors affecting the health and prospects of the airline industry result from the unique economics of commercial aviation, there is a correlation between the regulation of international aviation, there is a correlation between the regulation of international aviation services and the state of the industry. Decisions regarding who will fly where, how often, and for what kind of remuneration, form the most important legal issues affecting international air transportation. With this focus, this paper explores the extent to which the present system contributes to the industry's problems. It concludes with a discussion of current measures used to counteract over-regulation and suggests a modest, practicable approach which would build on the existing legal framework using recent advances in international trade law.
TL;DR: The history and character of industry-supported human use research requirements, with special emphasis on questions concerning the role of industry in sponsored research, are reviewed.
Abstract: This paper reviews the history and character of these research requirements, with special emphasis on questions concerning the role of industry in sponsored research. This discussion is becoming more vigorous with each passing year as private investment in research assumes greater importance in the scientific enterprise. I concentrate on issues of industry-supported human use that are on the “cutting edge” of contemporary biomedical ethics. Of special interest are questions about the disclosure of financial arrangements between industry and investigators, such as the nature and amount of capitated remuneration.
TL;DR: The growth of more contingent pay systems has been a key development in the 1980s and 1990s as discussed by the authors, which are, according to the prescriptive literature, much more contingent on individual business circumstances than in the past.
Abstract: The growth of more contingent pay systems has been a key development in the 1980s and 1990s. Various contextual changes — such as the pattern of employment, the decline of collective bargaining and Government support for particular initiatives to encourage financial participation — has given employers an increasing freedom in determining both the composition and level of remuneration (Brown and Walsh, 1994). This new freedom has allowed new pay systems to develop which are, according to the prescriptive literature, much more contingent on individual business circumstances than in the past (Armstrong and Murlis, 1994; Schuster and Zingheim, 1992). Pay determination has become increasingly linked to the performance of the individual company or business unit, the team or work group and, of course, the individual employee. Concepts such as the “going rate”, the “rate for the job” and pay comparability have been challenged and, in some cases, replaced with new approaches to pay determination. These new approaches include “person related pay”, as opposed to “job related” (Mahoney, 1989; Gomez‐Meja and Balkin, 1992); more decentralised pay determination systems (Millward et al, 1990; Jackson, Leopold and Tuck, 1993); more “variable” or “at risk” pay (CBI, 1994i); and more flexible benefits schemes (IDS, 1991). Most importantly, the concept of “reward strategy” has emerged, the clear linkage of remuneration systems to business objectives and company culture (Hewitt Associates, 1991; Murlis and Armstrong, 1994; Gomez Meja and Balkin, 1992). A recent CBI/Wyatt publication on “Variable Pay” (CBI, 1994) concludes that employers are looking for payment strategies based around three criteria:
TL;DR: In this paper, the authors present a record of events and developments in some areas germane to the employment relationship in Britain between October 1994 and October 1995, and offer some interpretative comment on elements of continuity and change.
Abstract: This paper follows the pattern of most of its predecessors, first in serving as a record of events and developments in some areas germane to the employment relationship in Britain between October 1994 and October 1995, and second in offering some interpretative comment on elements of continuity and change. The decelerating economic recovery brought continuing but modest reductions in unemployment and some increase in price inflation. However, tax increases, perceived job insecurity, generally low earnings increases and other factors inhibited any widespread sense of economic well-being and restrained consumer demand. Among the key events were the TUC's strategic initiative on employee representation and union recognition, and the debates surrounding the Greenbury Report on executive remuneration packages and a national minimum wage. Industrial disputes reached record lows. Employment prospects, job insecurity and work-related stress were recurrent issues, with the different approaches of the main political parties to employment matters being clarified ahead of the coming general election.