ISSN 1045-6333 HARVARD JOHN M. OLIN CENTER FOR LAW‚ ECONOMICS‚ AND BUSINESS EXECUTIVE COMPENSATION AS AN AGENCY PROBLEM Lucian Arye Bebchuk and Jesse M. Fried Discussion Paper No. 421 04/2003 Harvard Law School Cambridge‚ MA 02138 The Center for Law‚ Economics‚ and Business is supported by a grant from the John M. Olin Foundation. This paper can be downloaded without charge from: The Harvard John M. Olin Discussion Paper Series: http://www.law.harvard.edu/programs/olin_center/ The
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Eddie Bee’s current compensation plan. In what ways do you believe this compensation plan and each of its elements might be contributing to the problems the company is currently having? What other internal and external factors should be explored? Wasserman (2009) stated that a compensation plan‚ whether good or not‚ has a significant impact on the future growth of the business. Companies use well-designed compensation plans in motivating employees‚ controlling compensation costs‚ and ensuring
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Victim Compensation: Introduction • Initial focus was only on the aspect of punishment • Now focus started shifting when encountered with the fact that the person who is victim of crime is getting nothing out of the whole process of criminal justice system or is getting a so called satisfaction by seeing the offender punished • Therefore Jurists‚ penologists etc in all countries started giving their full attention to the cause of victim in form of compensation • Hence the whole debate started
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Compensation is a very important aspect of the employee of a company; it seems important a well-defined compensation package is in place. “Compensation involves direct cash payments‚ indirect payments in the form of employee benefits‚ and incentives to motivate employees to strive for higher levels of productivity.” (Cascio‚ 2010‚ p. 413) It seems a compensation package will be different for each different career type but must always meet the needs of the employees and the organization. A proposal
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Introduction About Workmen’s Compensation Act‚ 1952 In the early 1990s‚ there was a great influx of foreign workers into Malaysia due to construction boom and industrialization. The growing presence of foreign workers in Malaysia can be explained by excess demand for labour combine with rapid economic growth. However‚ these huge influxes give a difficulty for employer to manage the compensation when many foreign workers employed frequently involved in the accident. In order to cope with this problem
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COMPONENTS OF AN ORGANIZATION An organization is a group of individuals who work together to achieve a common objective/goal. For this to happen‚ the organization has to have elements which ensure its sustainability and success. These elements are: Common purpose Co-ordinated efforts Division of labor Hierarchy of authority Span of control Departmentalization Centralization and decentralization COMMON PURPOSE Common purpose is the means for unifying members. An organization without purpose soon begins
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Products (MIPL).Millat Equipment Limited is one of the leading manufacturing organizations in Pakistan producing transmission components. The company acquired a complete gear manufacturing setup along with state of the art inspection facility from M/s AGCO Limited-UK‚ (owners of the Massey Ferguson brand of tractors) with an understanding to buy back the transmission components after meeting the local requirements of AGCO Licensee in Pakistan. The HR Department The HR department of Millat equipment
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Question: “If employee undervalue the cost of benefit‚ why should a company not drop benefit and simply add more direct compensation” Do you agree or disagree with this statement? Explain using relevant organizational examples. CONTENTS 1. Introduction 3 2. Findings and Analysis 2.1 What is employee benefit? 4 2.2 What is compensation?---- Critical analysis of compensation components and its function in an organization? 6 2.3 Total Reward Management
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Appropriate Technology 1. Appropriate Technology There is unanimity among the economists over the choice of AT. According to Yale Brozen‚ “ the AT for an area depends on its resources‚ patterns and its markets. It is therefore defined as an amalgam of skills methods‚ techniques and equipments that can contribute towards solving the basic soci-economic problems of the concerned communities”. • AT should‚ be utilized for development purposes in the name of social justice
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Corporate Finance A Short Summary On Executive Compensation as an Agency Problem INTRODUCTION: This paper is briefly written on some important elements and points depicting the involvement of the managerial power over the executive compensation. This paper not only illustrates the problems created by the managerial power or the agency problem in between the managers and the shareholders but also reflects that’s the executive compensation is a problem by itself. Issues that have been focused
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