(PDF) Corporate Governance and Executive Compensation

Corporate Governance and executive
remuneration

Introduction:
Executive remuneration was considered as
highly controversial subject which not only
attract the attention of the public, but also
attract the attention of the regulators, media,
etc. (Clarke & Branson, 2012). This paper
discusses relationship between the
compensation of executives and performance of
the company. Further it discusses the causes
because of which organization fails to align the
remuneration of executives with the objectives
of the company.

Executive Remuneration:
Productivity commission of Australian
government (2009) study stated that from the
period of 1990s to 2007, there was strong
growth in context of compensation paid to
executives and also occurrence of large
payments to the executives of the
organization, even though performance of the
company was poor, and this increase the
concern of the community that remunerations
paid to executives was not in control.