日本高管薪酬激励政策与公司绩效外文翻译.docVIP

日本高管薪酬激励政策与公司绩效外文翻译 外文翻译 原文 Executive Compensation Policy and Company Performance in Japan MaterialSource:////.Author: Katsuyuki Kubo The purpose of this paper is to analyse whether companies’ “way to pay their director” matters or not. Firstly, we fail to find a positive relationship between the performance?pay sensitivity and company performance. Thus, these results do not support our hypothesis that those companies that intensify the performance?pay sensitivity are more likely to improve their performance. In addition, this research fails to find a positive relationship between the change of pay policy and performance. These results are consistent with previous studies that directors’ pay is not designed to motivate directors to work toward shareholders’ value. Directors’ compensation in Japan In large Japanese companies, directors’ salaries usually consist of monthly pay and an annual bonus. Directors receive an annual bonus at the end of the fiscal year that is usually around 10?30 per cent of their total annual salary. The bonus paid to directors is considered a part of the distribution of profit. Xu 1997shows that directors do not receive their bonuses when firms perform badly. In practice, the amount of bonus for individual directors is determined by the president, but usually on the basis of their rank. One of the distinctive features of the board of directors in Japan is a strict hierarchy within company boards. The directors are classified as chairman, president, vicepresident, senior executives executives and non-titled directors. All of these directors are full-time members of the board. Importantly, this hierarchy is not based on company law. Similarly, in practice, directors’ monthly pay is also determined by the company president, according to a pay-scale based on the individual rank of the director and performance of the firm, such as its sales and profit. Director’s monthly pay is often determined as a proportio