Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Corporate Governance and Accountability

Corporate Governance and Accountability

Schiehll, Eduardo

Paperback

Accounting

ISBN10: 3639183827
ISBN13: 9783639183825
Publisher: Blues Kids Of Amer
Published: Sep 1 2009
Pages: 152
Weight: 0.51
Height: 0.35 Width: 6.00 Depth: 9.00
Language: English
Performance measurement and incentive compensation are considered two primary and interrelated business control systems. A performance measurement system provides information that is essential for understanding managerial decisions that affect firm value, thereby playing a key governance role in developing strategies, evaluating the achievement of organizational objectives, and determining managerial compensation. This study examines the drivers of the board of director's choice of performance measures in the CEO incentive compensation plan. Results show that performance measurement diversity increases with the increasing proportion of outsider directors on the board and decreases with the increasing informativeness of the firm's traditional financial performance measures. Results also demonstrate how the performance measures choice explains the portion of the CEO incentive compensation that is not explained by the firm's current observable financial performance measures. Overall, the findings should help boards of directors improve the design of performance measurement and incentive systems for better management monitoring.

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