Advertisement

Use of Information Technologies for Managing Executive Compensations in Network Companies

  • Zhanna MingalevaEmail author
  • Anna Oborina
  • Irena Esaulova
Conference paper
Part of the Lecture Notes in Networks and Systems book series (LNNS, volume 78)

Abstract

The article reveals the model of executive compensations in Russian company operating in the industry of ferrous and non-ferrous metals scrap and the ways of digitization and automation of the business process of calculating material remuneration. The purpose of the article is to suggest for Russian companies an appropriate model of executive compensations with possibility of digitization by means of information technologies. The ways of digitization are discussed. Grouping and pyramid of key performance indicators of managers in the company are proposed in the article. The examples of mapping key indicators for managers of different departments of the company are given in the article and the method of their calculation for a specific company is given. The methodic recommendations for top managers motivation are adopted to specific features appropriate to Russian industry of ferrous and non-ferrous metals scrap.

Keywords

Executive compensations Key performance indicators Information technologies Digitization 

Notes

Acknowledgment

The work is carried out based on the task on fulfilment of government contractual work in the field of scientific activities as a part of base portion of the state task of the Ministry of Education and Science of the Russian Federation to Perm National Research Polytechnic University (topic # 26.6884.2017/8.9 “Sustainable development of urban areas and the improvement of the human environment”).

References

  1. 1.
    Anderson, R.C., Bizjak, J.M.: An empirical examination of the role of the CEO and the compensation committee in structuring executive pay. J. Bank. Finan. 27(7), 1323–1348 (2003)CrossRefGoogle Scholar
  2. 2.
    Barontini, R., Bozzi, S.: Board compensation and ownership structure: empirical evidence for Italian listed companies. J. Manag. Gov. 15(1), 59–89 (2011)CrossRefGoogle Scholar
  3. 3.
    Coughlan, A.T., Sehmidt, R.M.: Executive compensation, management turnover and firm performance: an empirical investigation. J. Acc. Econ. 7, 43–66 (1985)CrossRefGoogle Scholar
  4. 4.
    Murphy, K.: Executive compensation. In: Ashenfelter, O., Card, D. (eds.) Handbook of Labor Economics, vol. 3, pp. 2486–2557. Elsevier, Amsterdam (1999)Google Scholar
  5. 5.
    Lin, Y.-L., Chen, Y.-J.: Direct and indirect effects of job complexity of senior managers on their compensation and operating performances. Adv. Intell. Syst. Comput. 773, 812–821 (2019)Google Scholar
  6. 6.
    Mingaleva, Z., Bykova, E., Plotnikova, E.: Potential of the network concept for an assessment of organizational structure. Procedia-Soc. Behav. Sci. 81, 126–130 (2013)CrossRefGoogle Scholar
  7. 7.
    Jensen, M.C., Murphy, K.J.: CEO incentives: it’s not how much, but how. Harvard Bus. Rev. 68(3), 138–153 (1990)Google Scholar
  8. 8.
    Farid, M., Conte, V., Lazarus, H.: Toward a general model for executive compensation. J. Manag. Dev. 30(1), 61–74 (2011)CrossRefGoogle Scholar
  9. 9.
    Bąk, P., Michalak, A.: The problem of managers’ remuneration in state-owned enterprises in the context of corporate governance. Gospodarka Surowcami Mineralnymi/Mineral. Resour. Manag. 34(1), 155–174 (2018)Google Scholar
  10. 10.
    Jensen, M.C., Murphy, K.J.: Performance pay and top-management incentives. J. Polit. Econ. 98(2), 225–264 (1990)CrossRefGoogle Scholar
  11. 11.
    Frydman, C., Jenter, D.: CEO Compensation. Working Paper No. 77. Rock Center for Corporate Governance, Stanford University (2010)Google Scholar
  12. 12.
    Taylor, L.A.: Why are CEOs rarely fired? Evidence from structural estimation. J. Financ. 65(6), 2051–2087 (2010)CrossRefGoogle Scholar
  13. 13.
    Kaplan, S.N., Bernadette, A.M.: How has CEO turnover changed? Int. Rev. Financ. 12(1), 57–87 (2012)CrossRefGoogle Scholar
  14. 14.
    Warner, J.B., Watts, R.L., Wruck, K.H.: Stock prices and top management changes. J. Financ. Econ. 20, 461–492 (1988)CrossRefGoogle Scholar
  15. 15.
    Boschen, J.F., Duru, A., Gordon, L.A., Smith, K.J.: Accounting and stock price performance in dynamic CEO compensation arrangements. Acc. Rev. 78(1), 143–168 (2003)CrossRefGoogle Scholar
  16. 16.
    Conyon, M.J., Schwalbach, J.: Executive compensation: evidence from the UK and Germany. Long Range Plan. 33, 504–526 (2000)CrossRefGoogle Scholar
  17. 17.
    Chen, J., Ezzamel, M., Cai, Z.: Managerial power theory, tournament theory, and executive pay in China. J. Corp. Financ. 17(4), 1176–1199 (2011)CrossRefGoogle Scholar
  18. 18.
    Nannicini, A., Ferraz, D.P., Lopes, I.T.: Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies. Int. J. Discl. Gov. 15(4), 197–209 (2018)CrossRefGoogle Scholar
  19. 19.
    Sakawa, H., Moriyama, K., Watanabel, N.: Relation between top executive compensation structure and corporate governance: evidence from Japanese public disclosed data. Corp. Gov. Int. Rev. 20(6), 593–608 (2012)CrossRefGoogle Scholar
  20. 20.
    Banker, R.D., Darrough, M.N., Huang, R., Plehn-Dujowich, J.M.: The relation between CEO compensation and past performance. Acc. Rev. 88(1), 1–30 (2013)CrossRefGoogle Scholar
  21. 21.
    Lopes, I.T., Ferraz, D.P.: The value of intangibles and diversity on boards looking towards economic future returns: evidence from non-financial Iberian business organizations. Int. J. Bus. Excellence 10(3), 392–417 (2016)CrossRefGoogle Scholar
  22. 22.
    Fogg, C.D.: Implementing Your Strategic Plan: How to Turn “Intent” Into Effective Action for Sustainable Change. BookSurge LLC, Charleston (2006)Google Scholar
  23. 23.
    Fey, C.F., Furu, P.: Top management incentive compensation and knowledge sharing in multinational corporations. Strateg. Manag. J. 29, 1301–1323 (2008)CrossRefGoogle Scholar
  24. 24.
    Bebchuk, L.A., Fried, J.M.: Executive compensation as an agency problem. J. Econ. Perspect. 17(3), 71–92 (2003)CrossRefGoogle Scholar
  25. 25.
    Bebchuk, L.A., Fried, J.M.: Pay without performance. Harvard University Press, Cambridge, MA (2006)CrossRefGoogle Scholar
  26. 26.
    Bebchuk, L.A., Friedwalker, D.I.: Managerial power and rent extraction in the design of executive compensation. National Bureau of Economic Research Working Paper No. 9068 (2002)Google Scholar
  27. 27.
    Baxamusa, M.: The relationship between underinvestment, overinvestment and CEO’s compensation. Rev. Pac. Basin Fin. Mark. Policies 15(3), art. no. 1250014 (2012)CrossRefGoogle Scholar
  28. 28.
    Sun, J., Cahan, S.: The effect of compensation committee quality on the association between CEO cash compensation and accounting performance. Corp. Gov. Int. Rev. 17(2), 193–207 (2009)CrossRefGoogle Scholar
  29. 29.
    Gomez-Mejia, L., Wiseman, R.M.: Reframing executive compensation: an assessment and outlook. J. Manag. 23(3), 291–374 (1997)Google Scholar
  30. 30.
    Iwasaki, T., Otomasa, S., Shiiba, A., Shuto, A.: The role of accounting conservatism in executive compensation contracts. J. Bus. Fin. Acc. 45(9–10), 1139–1163 (2018)CrossRefGoogle Scholar
  31. 31.
    Danilina, E.I., Mingaleva, Z.A., Malikova, Y.I.: Strategic personnel management within innovational development of companies. J. Adv. Res. Law Econ. 5(19), 1004–1013 (2016)Google Scholar
  32. 32.
    Esaulova, I., Semenova, I.: The impact of the leadership on the employee proactivity. In: 26th Interdisciplinary Information Management Talks, Strategic Modeling in Management, Economy and Society, pp. 489–496. Kutná Hora, Czech Republic (2018)Google Scholar
  33. 33.
    Kirillova, M.M., Soboleva, E.V.: Features of motivation of top managers. Topical Issues Mod. Sci. 1, 75–81 (2013)Google Scholar
  34. 34.
    Levanova, L.N.: Features of motivation of upper managers in Russia. News of the Saratov University. New series. Seri.: Econ. Manag. Right 17(1), 50–55 (2017)Google Scholar
  35. 35.

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Perm National Research Polytechnic UniversityPermRussian Federation
  2. 2.Perm State UniversityPermRussian Federation
  3. 3.RosMetTrade CompanyPermRussia

Personalised recommendations