THE REMUNERATION-PERFORMANCE RELATIONSHIP IN CORPORATE GOVERNANCE: EVIDENCE FROM BOARD MEMBERS’ REMUNERATION AND FIRM PERFORMANCE

Abstract

The board of directors is an important corporate governance mechanism as it is responsible for the operation of a firm and protects the value of the investment made by investors in the firm. Therefore, board members should be supplied with an appropriate incentive to properly discharge their duties. One of the most important incentive mechanisms is remuneration. This study aims to reveal the effect of board members’ remuneration on the firm performance. Regression analysis was performed to test the hypotheses. 210 firm-year observations obtained from 76 non-financial firms traded in the BIST 100 between the 2018-2020 period were used. The indicators of firm performance return on assets, return on equity, and earnings per share. As a consequence of the study, the relationship between board members' remuneration and firm performance was found to be positive and statistically significant. These results show that the board members' remuneration is a strong incentive used to increase the firm performance and that a suitable remuneration policy should be established for directors.

Keywords

• Firm Performance
• Board of Directors
• Corporate Governance
• Remuneration

KURUMSAL YÖNETİMDE ÜCRET-PERFORMANS İLİŞKİSİ: YÖNETİM KURULU ÜYELERİNİN ÜCRETİ VE FİRMA PERFORMANSINDAN KANITLAR

Abstract

Yönetim kurulu, bir firmanın işleyişinden sorumlu olması ve yatırımcıların firmaya yaptıkları yatırımın değerini koruması nedeniyle önemli bir kurumsal yönetim mekanizmasıdır. Dolayısıyla yönetim kurulunda yer alan üyelere görevlerini düzgün bir şekilde yerine getirmeleri için uygun bir teşvik sağlanmalıdır. En önemli teşvik mekanizmalarından biri de ücrettir. Bu çalışmanın amacı, yönetim kurulu üyelerine ödenen ücretin firma performansı üzerindeki etkisini ortaya koymaktır. Oluşturulan hipotezleri test etmek amacıyla 2018-2020 dönemi arasında BİST 100’de işlem gören finans dışı 76 firmadan elde edilen 210 firma yılı gözleminden yararlanarak regresyon analizi gerçekleştirilmiştir. Firma performansının göstergesi olarak aktif kârlılığı, özkaynak kârlılığı ve hisse başına kâr kullanılmıştır. Çalışma sonucunda yönetim kurulu üyelerine ödenen ücret ile firma performansı arasında pozitif ve istatistiksel olarak anlamlı bir ilişki olduğu ortaya konmuştur. Bu sonuçlar, yönetim kurulu üyelerine ödenen ücretin firmanın performansını arttırmak amacıyla kullanılan güçlü bir teşvik unsuru olduğunu ve yönetim kurulunda görev yapan üyelere uygun bir ücretlendirme politikasının oluşturulması gerektiğini göstermektedir.

Keywords

• Firma Performansı
• Yönetim Kurulu
• Kurumsal Yönetim
• Ücret

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