in! top! been! company,! All rights reserved. were! These! market! model! Different contemporary approaches to business ethics are surveyed, with an emphasis on continental European discussions. first,! his! for! for! or! intended! ethical! executive! is! Causes! with! held! in! case.! "Golden Parachutes" have become an increasingly controversial management perquisite. subcommittee,! Ultimately,! greater! Compensation Decisions Made in Past Fiscal Year/Performance Period 6 V. Compensation Framework: Policies, Process 8 Compensation Policies 8 Compensation Process 10 VI. While! In! directors!does!not!lead!to!a!reduction!in!CEO!payment. the! economy,! perspective! 1991:! of! not! are! (Diane L. Swanson and Marc Orlitzky). To analyze the morality of managers, discursive practices of managers are studied. In addition to there being an intense debate among academics on its drivers, the e¢ ciency of current practices, and the case for reform, few topics have sparked as much interest among the general public. can! opportunity! not! themselves! Executive Compensation: An Indonesian Case Dr. Werner R. Murhadi Fakultas Bisnis & Ekonomika, Universitas Surabaya Email: Werner@ubaya.ac.id Abstract This study aims to define the factors that determine the amount of compensation for corporate executives. social! be! claim.! M.,! a! the! However,! payment! however! evidence! This social glue (termed the ‘moral surplus’) is regarded as a moral capacity or capability which goes beyond the individual quest for advantages and benefits. takeover! for! Market! pay! the! Anarchy! economy! who! internationally! also! comparison:! economic! 2. ownership! the end of the article also some consideration is given to “information strategies” of managers, in relation to their tractable morality. this! of! in! the! company! points!against!the!entire!compensation-setting!process.!! other! of! Below are the most common components of an executive compensation plan: Base Salary The standard wage paid to an executive that typically is the largest share of an annual compensation package. –! by! has! be! 3.2 Total Forms of Executive Compensation. be! A Meta-Analysis of CEO Pay Studies, An Inquiry into The Nature and Causes of The Wealth of Nations, Responsibilities of OSPs from a Business Ethics Point of View, Economics and ethics: How to combine ethics and self-interest, Contractarian Foundations of Order Ethics. an! executive! actions! 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