We analyze the relation between CEO compensation and networks of executive and non-executive directors for all listed UK companies over the period 1996–2007. We examine whether networks are built for ...reasons of information gathering or for the accumulation of managerial influence. Both indirect networks (enabling directors to collect information) and direct networks (leading to more managerial influence) enable the CEO to obtain higher compensation. Direct networks can harm the efficiency of the remuneration contracting in the sense that the performance sensitivity of compensation is then lower. We find that in companies with strong networks and hence busy boards the directors' monitoring effectiveness is reduced which leads to higher and less performance-sensitive CEO compensation. Our results suggest that it is important to have the ‘right’ type of network: some networks enable a firm to access valuable information whereas others can lead to strong managerial influence that may come at the detriment of the firm and its shareholders. We confirm that there are marked conflicts of interest when a CEO increases his influence by being a member of board committees (such as the remuneration committee) as we observe that his or her compensation is then significantly higher. We also find that hiring remuneration consultants with sizeable client networks also leads to higher CEO compensation especially for larger firms.
The aim of the article is to assess the situation in terms of wage inequality and identify factors influencing changes in the levels, dynamics and relations of wages in voivodeships in Poland in ...2012–2021. In Poland, during the analyzed period, an economic crisis occurred in 2012 as a consequence of the crisis of 2008–2009 and since 2020. Average monthly gross wages in Poland will be used for this purpose. Based on this data, deviations, relationships, and rates of change will be calculated. To carry out the analysis and evaluation, I will use statistical data published in the Statistical Yearbooks of the Central Statistical Office in Warsaw for the years 2012–2021. In this article, the region will be identified with the voivodeship, according to the administrative division.
Payment systems and incentives in dentistry Grytten, Jostein
Community dentistry and oral epidemiology,
February 2017, 2017-Feb, 2017-02-00, 20170201, Volume:
45, Issue:
1
Journal Article
Peer reviewed
Open access
In this commentary, we discuss the advantages and disadvantages of the following incentive‐based remuneration systems in dentistry: fee‐for‐service remuneration, per capita remuneration, a mixed ...payment system (a combination of fee‐for‐service remuneration and per capita remuneration) and pay‐for‐performance. The two latter schemes are fairly new in dentistry. Fee‐for‐service payments secure high quality, but lead to increased costs, probably due to supplier‐induced demand. Per capita payments secure effectiveness, but may lead to under‐treatment and patient selection. A mixed payment scheme produces results somewhere between over‐ and under‐treatment. The prospective component (the per capita payment) promotes efficiency, while the retrospective component (the fee‐for‐service payment) secures high quality of the care that is provided. A pay‐for‐performance payment scheme is specifically designed towards improvements in dental health. This is done by linking provider reimbursements directly to performance indicators measuring dental health outcomes and quality of the services. Experience from general health services is that pay‐for‐performance payment has not been very successful. This is due to significant design and implementation obstacles and lack of provider acceptance. A major criticism of all the incentive‐based remuneration schemes is that they may undermine the dentists’ intrinsic motivation for performing a task. This is a crowding‐out effect, which is particularly strong when monetary incentives are introduced for care that is cognitively demanding and complex, for example as in dentistry. One way in which intrinsic motivation may not be undermined is to introduce a fixed salary component into the remuneration scheme. Dentists would then be able to choose their type of contract according to their abilities and their preferences for nonmonetary rewards as opposed to monetary rewards. If a fixed salary component cannot be introduced into the remuneration scheme, the fees should be ‘neutral’; that is, they should just cover the costs of the services provided. This is one way in which supplier‐induced demand can be limited and costs contained.
Women have traditionally been underrepresented on boards of companies, but after some social and legal pressure their presence has been increased during recent years. This paper examines the relation ...of the presence of female directors both at board meetings and at audit and remuneration committees, with CEO pay and the shareholders' consultative vote on managerial remuneration plans ("say on pay"). Using a large sample of Spanish firms listed between 2011 and 2015, our study reveals that firms with female representation on their remuneration committee, display lower levels of CEO pay and CEO pay growth. We also obtain evidence that this effect is attributable to the proprietary female directors. Additionally, from the "say on pay" perspective, female membership of the remuneration committee is associated with a lower number of votes in terms of director remuneration reports and related policies. Overall, our results indicate that female directors on the remuneration committee contribute to a moderation of executive remuneration growth and are consequently perceived by shareholders as valuable resources in the design of executive remuneration plans. This confirms the influence of the minority group, females, in the sustainable progress of these companies. Our results support the presence of female directors not only as a social measure or tokenism, but also as a contribution to good governance practice.
In recent years, electricity markets have been characterized by a growing share of fluctuating renewable energies, which has increased concerns about the security of electricity supply. As a ...consequence, existing market designs are adapted, and new capacity remuneration mechanisms are introduced. However, these mechanisms entail new challenges, and it is disputed whether they are indeed needed. In this article, an overview of the current debate on the necessity of capacity remuneration mechanisms is provided. Furthermore, initial experiences of real-world implementations are discussed, and common findings in the literature, categorized by their economic implications, are derived. Finally, shortcomings in existing research and open questions that need to be addressed in future works are pointed out.
•The need for capacity remuneration mechanisms is controversially discussed.•Experiences of real-world implementations are summarized.•Findings from the literature show a broad field of economic implications.•Further research topics are identified, e.g., efficiency and cross-border effects.
Many deregulated electricity markets worldwide have adopted capacity remuneration mechanisms (CRMs) to ensure capacity adequacy. Although these mechanisms have served many countries well in the last ...two decades, they may drive the generation mix away from the optimal in high variable renewable energy (VRE) penetration power systems. This paper investigates the impact of CRMs under different VRE penetrations by a long-term equilibrium model. We find that state-of-the-art CRMs like reliability options (ROs), can only reduce the financial risks for renewables when the VRE penetration stays low. It will reversely amplify renewables' risks and hinder their growth as their penetration increases. The underlying reason is that in a renewable-dominated power system, scarcity hours are triggered not only by demand peaks but also by VRE troughs, in which case renewables have to pay the penalty of non-delivery. Using the UK data, results show that compared with the optimized benchmark, existing CRMs like scarcity pricing (SP) and ROs are unable to lead to the optimal low-carbon generation mix, but for different reasons. The SP mechanism invests sufficient VRE but lacks incentives for controllable devices like hydropower plant and energy storage. Meanwhile, the ROs mechanism hinders the investment in VRE but encourages the investment of nuclear plant and storage to reduce the scarcity hours.
•Risks in electricity markets are illustrated.•Reverse impact of reliability options is mathematically proved.•Reliability options' effect on generation mix is investigated.•Existing mechanisms' deficiency is elaborated.
In Canada, fees for publicly covered health services are negotiated between professional associations and provincial governments, usually for multi-year periods. Whereas almost all services provided ...by physicians are publicly covered, some professions, such as optometrists, serve both publicly and privately paying patients. For these professions, the gap between what they are paid for both types of patients looms large in their negotiation with the government. Moreover, they can threaten to walk out and refuse to treat publicly covered patients altogether, which increases their bargaining power vis-à-vis the government. The failed negotiation between optometrists and the Québec government between 2015 and 2018, and its resolution in 2018 is therefore a case study that offers valuable insights about the relationships between public payers and professions in a context where publicly covered services are only a portion of the profession’s income. Amid stalled negotiations, thousands of optometrists announced they would collectively opt out of the public system. However, this move was blocked by the Québec government via a ministerial decree which was then legally challenged by the Québec Association of Optometrists. The escalation of this dispute attracted considerable media coverage, garnered public interest, and mounted pressure on the Québec government. Ultimately, an agreement on an updated remuneration was reached ahead of the court date, and the new fees came into effect in August 2018. Au Canada, les tarifs des services de santé couverts par le système public sont négociés entre les associations professionnelles et les gouvernements provinciaux, généralement pour des périodes pluriannuelles. Alors que la quasi-totalité des services fournis par les médecins sont couverts par le système public, certaines professions, comme les optométristes, s’adressent à la fois à des patients bénéficiant d’une couverture publique et à des patients bénéficiant d’une couverture privée. Pour ces professions, la différence entre ce qu’elles sont payées pour les deux types de patients représente un contrainte considérable dans leurs négociations avec le gouvernement. En outre, les membres de ces professions peuvent menacer de quitter l’accord et de refuser de traiter les patients couverts par le système public, ce qui accroît leur pouvoir de négociation vis-à-vis du gouvernement. L’échec des négociations entre les optométristes et le gouvernement du Québec entre 2015 et 2018, suivi d’une résolution en 2018, est donc une étude de cas qui offre des indications très utiles sur les relations entre les payeurs publics et les professions dans un contexte où les services couverts par le système public ne représentent qu’une partie des revenus de la profession. Face à l’impasse des négociations, des milliers d’optométristes ont annoncé qu’ils se retireraient collectivement du système public. Toutefois, cette décision a été bloquée par le gouvernement du Québec au moyen d’un décret ministériel qui a ensuite été contesté juridiquement par l’Association des optométristes du Québec. L’escalade de ce conflit a attiré une couverture médiatique considérable, a suscité l’intérêt du public et a fait monter la pression sur le gouvernement du Québec. Finalement, un accord sur une rémunération actualisée a été conclu avant la date du procès, et les nouveaux honoraires sont entrés en vigueur en août 2018.
This research examines the relationship between employees' career growth and organizational commitment. Career growth was conceptualized by four factors: career goal progress, professional ability ...development, promotion speed and remuneration growth, while organizational commitment was conceptualized using Meyer and Allen's (1997) three component model. Survey data, collected from 961 employees in 10 cities in the People's Republic of China, showed that the four dimensions of career growth were positively related to affective commitment, and that three of the facets were positively related to continuance and normative commitment. Only three of eighteen two-way interactions among the career growth factors affected organizational commitment, suggesting that the career growth factors influence commitment in an additive rather than a multiplicative manner.
Results focus on how career growth can be used to manage organizational commitment.
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