Measuring the Acceptability and Importance of Determinants of Compensations for Board of Directors of Iranian Companies

Document Type : Research Paper

Authors

1 Ph.D Student of Accounting, Tehran University, Aras Pardis, Tehran, Iran.

2 Associate Professor of Accounting, Tehran University, Tehran, Iran.

Abstract

Objective: The purpose of this study is to measure the acceptability and importance of determining factors for the compensation of the board of directors in Iranian companies by referring to the views of the members of the board of directors of the companies. The determinants of the compensation of the board of directors are identified in the paper Karami and Jabari (2018).
Methods: The amount of the approval of the board of directors by the determinants of the compensation of the board of directors has been obtained by using a questionnaire and a five-point Likert scale. Also, the opinion of the board members about the importance of the main factors determining the compensation of the board of directors was obtained by using a questionnaire and in a five-point Likert scale. The research data on the acceptability of the determinants of reward by the T-test of a single-sample binomial was analyzed. Also, for comparing the importance of the main determinants of reward, the mean of the data is compared with one way ANOVA.
Results: The members of the board of directors of the company are agree with considering the achievement of annual goals, changes in company risk, company size, intensity of industry competition, industry hard work, the probability of depriving the board of directors of social rights, rewards of similar companies and legal constraints in Determining the compensation of the board of directors.
Conclusion: According to the board members of the Iranian companies, the compensation of the board of directors should be determined according to the amount and terms of achieving the annual goals of the company.

Keywords

References

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History

  • Receive Date: 04 September 2018
  • Revise Date: 27 October 2018
  • Accept Date: 31 October 2018

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