Standardization of compensation for senior executives and limited intervention of law
Published date: 05 Jun 2009
Copyright
The determination of corporate executive compensation is a kind of affiliated transactions including special conflicts of interest in the company. The regulation of executive compensation by law is extremely necessary but plays a limited role, and the scope and mode of such role are specific. The due process and information disclosure system in determining executive compensation prescribed in company law and securities law, the policy guidance of the tax legal regime, and the active and prudential judicial review are the three aspects of the regulation of executive compensation by law, the common goal of which is to ensure and enhance the correlation between executive compensation and corporate performance, i.e., the realization of the principle of “performance-based compensation.”
LI Jianwei . Standardization of compensation for senior executives and limited intervention of law[J]. Frontiers of Law in China, 2009 , 4(2) : 236 -257 . DOI: 10.1007/s11463-009-0014-3
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