Relative performance evaluation in executive pecuniary compensation: empirical evidences in Brazil

Authors

DOI:

https://doi.org/10.5902/1983465921942

Keywords:

Remuneration to Executives, Relative Performance Evaluation, Conflict of Agency

Abstract

The objective of this study was to analyze the implicit use of relative performance evaluation in BM&FBovespa listed companies as a way to measure the remuneration of its executives. To define the sample, we sought to identify companies that disclosed information about the compensation of their executives between 2009 and 2012, totaling the sample size in 67 companies, totaling 112 observations. They were then categorized in order to capture risk sharing as predicted by the theory of relative performance evaluation. The results of this research indicate a strong asymmetry in the distribution of the compensation, mainly due to the long-term compensation, which caused the occurrence of outliers. As a result of this situation, and following studies already developed, it was decided to test the model through quantile regression. Even with the use of the median regression it was not possible to identify statistically significant evidences of the occurrence of relative performance evaluation, therefore, there is no evidence that the variation of the result of the sector reduces the impacts that the results obtained by the organizations exercise on the executive remuneration.

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Author Biographies

Luiz Carlos Marques dos Anjos, Universidade Federal de Pernambuco, Recife, PE

Professor adjunto na Universidade Federal de Pernambuco

Adhemar Ranciaro Neto, Universidade Federal de Alagoas, Maceió, AL

Doutorado em Física da Matéria Condensada pela Universidade Federal de Alagoas (2016). Atualmente é professor da Universidade Federal de Alagoas. 

Edilson Paulo, Universidade Federal do Rio Grande do Sul, Porto Alegre, RS

Pós-doutoramento em Controladoria e Contabilidade pela Universidade Federal de Santa Catarina (2018). Professor Associado II da Universidade Federal do Rio Grande do Sul (UFRGS)

Paulo Aguiar do Monte, Universidade Federal da Paraíba, João Pessoa, PB

Pós-Doutorado pela University of Cambridge/UK (2010), Doutorado em Economia - PIMES/UFPE (2005). Técnico em Contabilidade (1994). Professor Associado III da Universidade Federal da Paraíba (UFPB). Atualmente, faz parte do Programa de Pós-Graduação em Economia (PPGE/UFPB) e de Ciências Contábeis (PPGCC/UFPB).

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Published

2019-07-30

How to Cite

Anjos, L. C. M. dos, Neto, A. R., Paulo, E., & Monte, P. A. do. (2019). Relative performance evaluation in executive pecuniary compensation: empirical evidences in Brazil. Revista De Administração Da UFSM, 12(3), 509–526. https://doi.org/10.5902/1983465921942

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