Fairness of CEO Compensation

Intellectual illumination of isolated scholars: An online scholarly conference in the epoch of pandemic

“…In the holistic and fair executive compensation framework, which is suggested to be implemented with the new corporate governance (KISS) structure, there are 10 components ( Figure 2): pay for financial performance, pay for non-financial performance, pay for sustainability, pay for resilience, pay according to peers, pay according to firm risk, pay according to culture, pay according to strategy, and pay for integration, and pay for characteristics, competence, and individual performance. All of these 10 factors have to be considered and satisfied to have the desired effect (Eklund, 2019). In this model, which is developed in line with the tenets of the stakeholder and behavioral agency theories, all parts of the stakeholders have been equally valued.…”

“…Pay according to risk presents that the variable pay of a CEO should depend on the systematic and unsystematic firm risk. Pay according to integration is related to concepts of the pay gap within the management level, internal fairness, and equity in the pay levels in the organization (Eklund, 2019).…”