Characteristics of Compensation Committees and Non-Executive Compensation: Evidence from Taiwan

47 Pages Posted: 29 Jan 2023

See all articles by Yu-Ling Tsai

Yu-Ling Tsai

National Cheng Kung University

Hua-Wei Huang

National Cheng Kung University

Mai Dao

University of Toledo - College of Business Administration

Shih-Bin Wu

affiliation not provided to SSRN

Abstract

Unequal pay has become a global threat to meeting the United Nations’ sustainability goals. Taiwan has been making efforts to eliminate the pay disparity between executives and employees by requiring Taiwan-listed firms to disclose the prior year’s average non-executive employee compensation. This study finds that compensation committee meetings and size are associated with a higher CEO-to-employee pay ratio. We further find that the labor practices and health sustainability issues on the U.S. SASB Materiality map strengthen the positive association between compensation committee size and the pay ratio. The results also reveal that the Employee Engagement, Diversity & Inclusion issues on the U.S. SASB Materiality map strengthen the positive relation between compensation committee meetings and the CEO-to-employee pay ratio. Our findings are of interest to the Taiwanese government and other governments with similar institutional environments. Our results are also important to investors and other stakeholders who can use this information to make investments and other related decisions.

Keywords: Compensation committee, voluntary, mandatory, compensation disclosure, U.S. SASB Materiality Map.

Suggested Citation

Tsai, Yu-Ling and Huang, Hua-Wei and Dao, Mai and Wu, Shih-Bin, Characteristics of Compensation Committees and Non-Executive Compensation: Evidence from Taiwan. Available at SSRN: https://ssrn.com/abstract=4341808 or http://dx.doi.org/10.2139/ssrn.4341808

Yu-Ling Tsai

National Cheng Kung University ( email )

No.1, University Road
Tainan
Taiwan

Hua-Wei Huang (Contact Author)

National Cheng Kung University ( email )

Mai Dao

University of Toledo - College of Business Administration ( email )

2801 W. Bancroft
Toledo, OH 43606
United States

Shih-Bin Wu

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
68
Abstract Views
315
Rank
640,245
PlumX Metrics