%0 Journal Article
%T How Responsive Executive Compensation is to Corporate Performance? An Indian Perspective
%J -
%D 2017
%X Based on the principal-agent framework, the present research puts to empirical scrutiny the responsiveness of executive pay to corporate performance in a sample of 209 companies listed on the S&P BSE 500 Index. Both sensitivity and elasticity models have been formulated to measure the strength and magnitude of the pay-performance relationship over the period 2008-09 to 2012-13. Using robust statistical tools, the results of the present study reveal a positive, yet weak strength of such relationship. The stronger responsiveness of pay to accounting-based performance vis-¨¤-vis to market-based performance suggests remedial compensation policies further aligning executive pay to increase in shareholders¡¯ wealth in the sample Indian firms. Future research can explore additional theoretical underpinnings of the pay paradigm
%K Executive compensation
%K Agency theory
%K Pay-performance relationship.
%U http://scholarshub.net/index.php/ijcms/article/view/211