Executive Remuneration - an insight into structures and legislations around the world

Abstract

The compensation of directors and, in particular, the package composition has a great impact on companies' performances. Indeed, the most famous scandals such as Parmalat and Enron showed how an improper incentives' creation might enhance negative behaviours and agency problems, both for SMEs and listed companies. Firstly, the dissertation will analyse the directors' remuneration in SMEs and the factors that amplify or hinder the pay rise, such as the formality, public scrutiny, legal and governance strategies, HR, debt and free cash flows amounts, ownership dispersion, non-family CEOs, socialization and rationalization tactics. Secondly, it will dwell on the legislations implemented in U.S.A., China,U.E., Japan, India, U.K., Brazil, Russia, Australia and Nigeria. Finally, it will conclude with an analysis of the biggest global proxy advisor, the Institutional Shareholder Services, on its working processes, evaluation criteria and a real 2021 remuneration analysis.