Original Research

CEO pay-performance sensitivity in the South African context

Mark Bussin
South African Journal of Economic and Management Sciences | Vol 18, No 2 | a838 | DOI: https://doi.org/10.4102/sajems.v18i2.838 | © 2015 Mark Bussin | This work is licensed under CC Attribution 4.0
Submitted: 03 January 2014 | Published: 28 May 2015

About the author(s)

Mark Bussin, University of Johannesburg, South Africa

Full Text:

PDF (827KB)

Share this article

Bookmark and Share

Abstract

The topic of executive pay-performance sensitivity has resulted in mixed research findings. Literature related to executive remuneration constructs, company performance measures and the underlying theories is critically reviewed in this article. The literature is compared to research findings within the South African context pre, during and post the Global Financial Crisis of 2008. The researcher found similar results in the South African context compared to research in other countries and industries. The research challenges the notion that there is one dominant theory driving CEO compensation. The principal-agent theory, supported by the optimal contract theory, are foremost during periods of strong economic performance, while the influence of managerial power and other behavioural theories appear to prevail during periods of weak economic performance. This article proposes some critical considerations in order to manage this tension.

Keywords

No related keywords in the metadata.

Metrics

Total abstract views: 1121
Total article views: 2451

 

Crossref Citations

1. Chief executive officer compensation sensitivity in the South African mining industry
Mark Bussin
Acta Commercii  vol: 18  issue: 1  year: 2018  
doi: 10.4102/ac.v18i1.573