Clawback Rule – The Ground of Managers Responsible. Model of Remuneration

Abstract

The paper concerns the duties and responsibilities of managers using the principle of clawback. The authors proposed their own model of financial model of construction of remuneration for managers. There are in practice ethical problems concerning the level of requirements and qualifications versus salary and the level of legal and financial liability, especially against top-managers of the largest enterprises; often in a situation of extensive economic and social impact of their decisions. The problem of a manager’s responsibility has a dual nature. On the one hand the manager is charged with overall responsibility for all financial and PR losses of a company, on the other hand the manager takes moral, legal and financial responsibility for particular decisions. This article considers the financial responsibility area. The subprime financial crisis has sparked a discussion about the responsibility of top management in the context of disclosure of large bonuses paid to the senior managers and lack of consequences for bankruptcies. Very high salaries the executives were paid, were not sufficiently related to the system of contractual and administrative responsibility.