Top management compensation and performance in Russian companies

Bogatyrev K.
Additional contact information
Bogatyrev K.: Lomonosov Moscow State University

Journal of Corporate Finance Research Корпоративные финансы, 2016, issue 1 (37), 5-22

Abstract: This paper contributes to the research on top management remuneration policy and the way in which it relates to performance in Russian corporations. Following an overview of the evidence presented in previous studies focusing on other markets, the paper presents a new empirical study of pay and performance using self-collected data on 93 Russian public companies for the five-year period between 2009 and 2013. The data on key management personnel compensation has been collected from the companies' official reports, including annual or financial reports and other stock exchange reports. The data on other financial indicators has been procured from the Bloomberg Professional® database. Using fixed effect models for econometric analysis, we find evidence of a positive relationship between compensation and business performance in Russia, although this is not evident for every performance indicator. Indeed, both short-term and long-term forms of compensation as well as their sum show a positive relationship to return on assets (ROA), and the respective sensitivities of pay to performance are not negligible. However, institutional or state ownership can weaken this sensitivity. The relationship is only evident in companies with no state participation. Whereas 33 state-owned companies in the sample exhibit no significant relationship of top management compensation to corporate performance, the accounting profits and ROA of the remaining 60 (private) companies serve as significant determinants of remuneration levels.

Keywords: MANAGEMENT COMPENSATION; EXECUTIVE COMPENSATION; MANAGEMENT REMUNERATION; MANAGEMENT PAY; PAY AND PERFORMANCE (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://cyberleninka.ru/article/n/top-management-co ... in-russian-companies

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:scn:026790:16937044

Access Statistics for this article

More articles in Journal of Corporate Finance Research Корпоративные финансы from CyberLeninka, Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики»
Bibliographic data for series maintained by CyberLeninka ().