Remuneration and Pay-Performance Relationship Assessment

In this paper we gathered a substantial pool of relevant papers, addressing one of the main issues of corporate governance – executive remuneration and other remuneration-like incentives. Eventually, the effectiveness of these incentives for firms’ performance maximization and the existence of a correlation between firms’ performance and any of these incentives is also tested. Furthermore, other factors, both inside and outside the firm that could alleviate agency costs and managers’ “empire building” are considered in this paper.

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