Short Report on The Relationshp Between Executive Remuneration And Company Performance

Short Report on The Relationshp Between Executive Remuneration And Company Performance

I. Problem statement

Most often it is observed that the skill and experience of executive or C suite managers have a  direct bearing on the performance of the corporation. The success and attitude of them impact the future of the corporation too. Thus it is essential and inevitable to ensure they are well motivated and recognized. It might be true that the type and nature of remuneration and reward be different for other employees and executive management, however, the fundamental aspect remains the same i.e. the interrelationship and co-relationship between their performance and remuneration. Thus it is essential to understand with precision if there is any relationship between the two variables. The research will help to conclude nature, extend, and magnitude of relevance and similarity. The research also aims at establishing the nature of the direction of interlink between the variable when the performance is measured in non-monetary terms like growth, reputation, and organizational culture.

II. Research question

a. Main objective
• The co-relationship between the executive management pay and the monetary return of the corporation.
• The co-relationship between the executive management remuneration and return on asset
• The co-relationship between the executive management remuneration and return on equity.
• The co-relationship between the executive management remuneration and profit margin.

b. Secondary objective
• The relationship between executive management remuneration and globalization policy of the corporation.
• The relationship between the executive management remuneration and reputation and goodwill of the corporation
• The relationship between the executive management remuneration and overall organizational culture.
• The variation in executive management remuneration in public and private sector corporations.