Reconsideration of Executive Compensation after the Global Financial Crisis
Date Issued
2015
Date
2015
Author(s)
Chang, Shih-Han
Abstract
This article can be divided into four parts: First, I introduce several traditional aspects in the executive compensation. It includes the business practice, the theory side, the court attitude, and the legislative point of view. Second, after the global financial crisis in 2008, many scholars indicate that the financial crisis is associated with executive compensation, however, others disagree. In this circumstance, I try to explain the association with the financial crisis and executive compensation by the examples of Bells Stearns and the Lehman Brothers, and introduce how the academy adjusts the point of view in the executive compensation. Third, the governments have amended the rules regarding the executive compensations to implement the changes of aspects and to prevent the next financial crisis, especially the Emergency Economic Stabilization Act of 2008, the Dodd-Frank Act, the Remuneration Code, and the UK Corporate Governance Code are worth studying. Finally, I focus in the current situation and the prospect of executive compensation in Taiwan’s legal system, including the scope of the directors'' remuneration, the disclosure of the pay, the introduction of the remuneration committee, executive compensation in financial institute, and judicial practice.
Subjects
Executive compensation
Agency theory
global financial crisis
the Emergency Economic Stabilization Act
the Dodd-Frank Act
the Remuneration Code
Type
thesis