Developing a Model for Executive Directors Compensation Plan Based on Balanced Scorecard Framework

Document Type : Research Paper

Authors

1 Ph.D Student in Accounting, Imam Khomeini International University, Qazvin, Iran.

2 Associate Professor of Accounting, Emam Khomeini International University, Qazvin, Iran.

3 Assistant Professor of Accounting, Emam Khomeini International University, Qazvin, Iran.

10.22103/jak.2020.14153.3003

Abstract

Objective: This study aims to provide a model for executive directors' compensation in private manufacturing companies, based on a balanced scorecard framework. The framework contains retrospective and prospective criteria in four areas of financing, customer affairs, internal processes, and growth and learning issues, which based on them it is possible to evaluate the manager at best and outline the company's future road-map.
Method: The Method of this research is qualitative and of survey type. In the first step, the factors influencing the design of the compensation plan were determined, using the Fuzzy Delphi method and interviewing with 16 academic experts. In the second step, the weight of each of the four balanced scorecard perspectives in the proposed plan was determined, using the survey method and fuzzy analytical hierarchical analysis. In this step, 22 experts, who were CEOs or members of the board of directors of the companies in different industries, completed the research questionnaire.
Results: The main factors of the proposed model were in the three groups of manager characteristics, internal environment characteristics, and external environment characteristics. Based on the findings, in the manager characteristics, the factor of effective communication with the group, and in the proposed plan of research, the growth and learning perspective are the most important.
Conclusion: Achieving the highest coefficient for growth and learning implies that from the perspective of the experts, the underlying changes in allocating compensations to management should have the highest priority.

Keywords

References

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History

  • Receive Date: 02 June 2019
  • Revise Date: 26 August 2019
  • Accept Date: 24 December 2019

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