The theory and practice of directors' remuneration : new challenges and opportunities / edited by Alexander Kostyuk, Markus Stiglbauer, Dimitry Govorun.

Includes bibliographical references and index.

Online resource; title from PDF title page (EBSCO, viewed January 22, 2016).

Front Cover; The Theory and Practice of Directors' Remuneration: New Challenges and Opportunities; Copyright page; Contents; List of Contributors; Introduction from Editors; Practitioners' Outlook; Academic Outlook; Director Remuneration is a Matter of Growing Importance in the EU; Legislation on Directors' Remuneration; Corporate Governance Codes; Remuneration Should Be Guided by Market Demands and Linked to the Company's Results; EU Commission Recommendation; Some of the Experience of Member States; Three Recommendations on Disclosure of Remuneration Policy.

Remuneration Should Promote the Long-Term SustainabilityRemuneration Policy; Remuneration Policies in the Financial Services Sector; Section I: Theory of Corporate Governance and Directors' Remuneration; Chapter 1 Corporate Governance and Remuneration; Introduction; The Theory of the Firm -- The Theory of Transaction Costs?; Beyond the Firm and Market Dichotomy; Incomplete Remuneration Contracts; Agency Theory; Adverse Selection; Moral Hazard; Different Agency Conflicts; Management and Collective Production; Outlook and Conclusion; References; Chapter 2 Directors' Remuneration and Motivation.

IntroductionAgency Theory and Managerial Compensation; Base Salary; Bonus; Stock Options; Employee Motivation; Current Intrinsic Motivator: Takeover Threats; Well-Balanced Packages; Conclusion; References; Chapter 3 Executive Compensation in the 21st Century: Future Directions; The 21st Century; Compensation and Motivation; Compensation Plans: Pay-Performance Link; Redefining Performance Evaluation in the Age of Sustainability; Conclusion; References; Section II: Cross-Industrial Remuneration Practices Analysis; Chapter 4 Financial Companies; Introduction.

The Crisis and Its Effects on Remuneration Governance in Financial InstitutionsElements of the Corporate Governance of Financial Institutions; Pre- and Post-Crisis Remuneration Governance; European Initiatives for Enhanced Governance and Remuneration; Corporate Governance; Remuneration; Structuring Variable Bonuses over Time; Discounting; Alternative Discounting Functions; Exponential Discounting; Hyperbolic Discounting; Quasi-Hyperbolic Discounting; Evaluation; Conclusion and Prospects; References; Chapter 5 Industrial Companies; Introduction; Background; Literature on CEO Compensation.

Research DesignResults; Directors Remuneration Policy; Directors Remuneration Design; Directors Remuneration Factors; Board's Role in Directors Remuneration; Accounting Regulation; Conclusion; References; Section III: Cross-Country Remuneration Practices Analysis; Chapter 6 Directors' Remuneration in the United States; Introduction; Remuneration Regulation and Reporting; Remuneration Design; Empirical Evidence on Director Remuneration; The Determinants of Director Remuneration; Characteristics of Firms Adopting Outside Director Stock-Option Plans.

This book argues for a correct balance between risk and reward and for Directors' remuneration to be equitable to all parties and stakeholders. By examining the current theories, practices and regulations and explaining them in detail it provides a state of the art overview of one of the key corporate governance issues of our time.

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