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What Questions Do Board Members in Public Service Organizations Ask about Executive Compensation?
Author(s) -
BART CHRIS,
CHAN Y. LILIAN,
KANAGARETNAM KIRIDARAN
Publication year - 2011
Publication title -
accounting perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.238
H-Index - 17
eISSN - 1911-3838
pISSN - 1911-382X
DOI - 10.1111/j.1911-3838.2011.00020.x
Subject(s) - corporate governance , political science , service (business) , public service , compensation (psychology) , executive compensation , ask price , management , executive board , business , public relations , psychology , marketing , social psychology , economics , finance
The purpose of this study is to investigate the governance questions that board members in public service organizations ask as they go about fulfilling their responsibilities for the oversight of executive compensation. We investigate the usage and perceived importance by board members of the 24 questions proposed by the Canadian Institute of Chartered Accountants that directors should ask about executive compensation. The study is based on a usable sample of 47 board members from public service organizations who attended a Canadian director training program. Our results suggest that the recommended executive compensation governance questions are not being asked with the same frequency or considered equally important by board members of public service organizations. Furthermore, the correlation between a question’s usage frequency and its perceived importance was not perfect. However, there appears to be a significantly positive relationship among the number of executive compensation governance questions asked and selected elements of a board’s governance structure.