DOI: 10.36347/sjebm.2015.v02i05.011

Pages: 510-514

This paper survey on related literature on how top management pay is influenced by poor quality of governance structure (controlling shareholder managerialism) and derives various testable implications by examining top manager’s cash compensation – salary and bonus- in Korean Chaebol. Moreover, this paper is aiming at explaining , compensation arrangements approved by boards often deviate from optimal contracting because directors are captured or subject to influence by management, sympathetic to management, or simply ineffectual in overseeing compensation.