Open AccessBoard Level Employee Representation and CEO Compensation: The Mediation and Interaction Effects of the Largest Shareholder
Author(s) -
Ali Dardour,
Rana Ejaz Ahmed
Publication year - 2021
Publication title -
management international
Language(s) - English
Resource type - Journals
eISSN - 1918-9222
pISSN - 1206-1697
DOI - 10.7202/1079220ar
Subject(s) - representation (politics) , business , compensation (psychology) , executive compensation , mediation , shareholder , accounting , control (management) , corporate governance , psychology , finance , social psychology , economics , management , political science , politics , law
The goal of this paper is to study the effect of board employee representation on the CEO compensation in French publicly listed companies. The study shows the following results: First, we found that employee board representation affects negatively and significantly the CEO total compensation. Second, employee representation has no effect on firm financial performance. Third, we found that French State strengthens the control of BLER over CEOs and their compensation, rather than simply mediate it.