Remuneration policy and corporate governance: Story from Indonesia, Malaysia, India, Singapore, Australia, and United States

Abstract

Objective - Remuneration becomes an interesting research project since the occurrence of global financial crisis in the world's economic. Remuneration relates to the corporate governance issues as well as agency theory. The objective of this research is to test the factors affecting remuneration in 6 countries (Indonesia, Malaysia, India, Singapore, Australia, and United States). Design/ Methodology/ Approach - The research takes samples from 929 manufacturing companies on the list of stock exchange in 6 Countries during 2010 up to 2013 by using purposive judgment sampling. The years are chosen considering those are the years when the companies in those 6 countries underwent a recovery from the global financial crisis impact. Result - There are significant differences in remuneration distribution between the companies with compensation committe or those without. Country/the company location in several ways could give significant difference related to remuneration distribution. Surprisingly, Company size and Compensation committee give negative effect towards remuneration distribution.