published_or_final_version / Public Administration / Master / Master of Public Administration

Orientation: The level of CEO compensation and its relationship with organisational performance has generated considerable interest worldwide. In light of compromised mining productivity as a result of the recent labour unrest in South African, some commentators have questioned the justification of certain CEO compensation in the country’s mining industry. Research purpose: The primary purpose of this study was to describe the relationship between CEO compensation and organisation performance in the South African mining industry. Motivation for the study: A deeper understanding of the relationship would enhance knowledge when developing optimal CEO reward systems to ensure sustainability of the mining industry within the South African context. Research design, approach and method: The research was a quantitative, archival study involving 30 mining companies over a five year period. The statistical analysis techniques used in the study included analysis of normality variance and multivariate regression. Main findings/results: The main finding of the research was that there was a moderate to strong relationship between CEO compensation and organisational performance in the South African mining industry. However, operating expenses have progressively increased, putting performance under pressure. Furthermore, it was also found that company size plays an influential role in CEO compensation levels. Practical/managerial implications: While the CEO compensation appears to be generally aligned with the organisational performance, the findings suggest that boards of directors should focus on structuring reward systems more optimally to mitigate managerial rent seeking in large companies and unsustainability in smaller companies. Contribution/value-add: This study has contributed to the body of existing knowledge on executive pay for performance in the context of the South African mining industry. In addition, the study has demonstrated that the other non-performance related measures need to be considered in executive compensation design. / Dissertation (MBA)--University of Pretoria, 2014. / lmgibs2015 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The purpose of this survey was to identify and compare the specific factors relating to merit pay that teachers, principals, and superintendents in Central Florida would accept in the development and implementation of a merit pay plan. A questionnaire, based on an instrument that was used in a previous study on merit pay factors in 1970, was developed that consisted of 38 factors. A five-point ordinal scale was used to measure the educators' degree of acceptance for each factor. There were 14 Central Florida school districts that participated in the survey including 433 teachers, 211 principals, and 12 superintendents. The response rate was 62.6 percent. The chi square test was the primary test used for the statistical analysis. The test was utilized to compare group responses on a factor-by-factor basis. Some conclusions made based upon the analysis of data were: 1. Agreement existed by the educators in Central Florida on a majority of 38 factors. 2. Teachers and principals rejected the following factors: a. Set a quota on the number of teachers eligible for merit pay each year. b. Teacher evaluation should include summer work experiences which relate to teacher's field. c. Teacher evaluation should include as a criteria an advanced degree or certificate. d. Teacher evaluation should include college/university training beyond a degree or certificate. e. Teacher evaluation should include conference and convention participation. f. Teacher evaluation should include scores achieved on standardized tests. 3. Teachers rejected having the principal-be the primary evaluator, whereas principals and superintendents were in general agreement with this factor. 4. Teachers showed a difference on more factors when divided on the basis of experiential level (1 to 10 years versus 11 years and over). In summary, although there were statistically significant differences identified, the comparisons were more alike than different with the majority being differences in degree only.

The purpose of the study was to determine the salaries and working conditions of agricultural education teachers in the United States. To accomplish this purpose the following objectives were identified: 1. To determine the demographic characteristics of agricultural education teachers. 2. To determine the salaries, salary supplements, and monetary fringe benefits of agricultural education teachers. 3. To determine the nonmonetary benefits of agricultural education teachers. 4. To determine the major instructional and noninstructional responsibilities of agricultural education teachers. 5. To describe the work settings and working conditions in which agricultural education teachers are employed. 6. To determine the work loads of agricultural education teachers. Most agricultural education teachers reported receiving health insurance benefits. However, only a small percentage (14.7%) of respondents reported receiving fully paid health insurance for themselves and their families. In addition, fewer than one-half (41.4%) of the agricultural education teachers reported receiving fully paid major medical insurance, eye care (13.1%), dental care (20.5%), and life insurance (35.3%). Production agriculture and agricultural mechanics remain the predominant subjects taught by agricultural education teachers. However, a majority of agricultural education teachers also reported teaching agriscience. Although only a small percentage (18.8%) of agricultural education teachers advised Young Farmer chapters, most (95.8%) advised FFA chapters. Nearly all (98.4%) agricultural education teachers classified their employment status as full-time. Typically, agricultural education teachers were mployed a mean 11.3 months per year. Most (69.5%) agricultural education teachers were employed in comprehensive high schools with a mean student population of 662.4 students. Agricultural education teachers reported a mean of 6.7 periods in a typical school day and teaching load of 5.2 instructional periods per day. Nearly three-fourths of the respondents reported having one period per day allotted for planning, student visitations, or student conferences. / Ed. D.

Thesis (MComm)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: For the past few decades the remuneration of directors has been in the spotlight, especially in view of the corporate scandals that occurred around the turn of the 20th century. Generally, managers need to manage firms in such a way that shareholders’ value is maximised. Unfortunately, shareholders of firms and the general public have the perception that directors are over-compensated, and that there is no relationship between the remuneration of directors and the financial performance of the firms to enhance shareholders’ value. A lack of transparency, inadequate disclosure by firms and remuneration committees’ conflict of interest are reasons cited for these perceptions. Although South Africa is ranked as a global leader in terms of its corporate governance practices, many firms still do not adhere to the King reports’ principles. This research study investigated whether a relationship exists between the remuneration of directors and the financial performance of firms. The firms selected for the study included both listed and delisted firms from the Industrial Sector of the Johannesburg Stock Exchange (JSE) for the time period 2002 until 2010. Ninety-three firms complied with the requirements to be included in the study. All these firms had effective remuneration strategies in place to promote financial performance and growth of the firms. Secondary data were collected for the nine consecutive years of the study period, representing a period prior to substantial changes in accounting and disclosure regulation that influenced the comparability of financial reporting of the firms. It is important to note that directors’ remuneration is not the only motivating factor for firm performance, but one of many. Directors’ remuneration and incentives should be optimally utilised to increase performance and growth in the firms, and it should not merely be a case of directors being overcompensated for services rendered. In order to operationalize directors’ remuneration, it was converted and subcategorised into four variables. These dependent variables for directors’ remuneration consisted of basic salary, bonuses (performance), gains on share purchases or share options and what was termed as “other” remuneration. “Other” remuneration included pension, medical, motor, and telephone allowances. To measure the financial performance of the firms, the following market and accounting measures were employed: turnover, earnings per share (EPS), total share return (TSR) and market value added (MVA). Analysing these variables’ data by means of selected descriptive statistical measures and inferential regression analysis, it appeared that the data were significantly skewed, but that financial performance of the firms was a strong determinant of the change in directors’ remuneration. Additional regression analyses were performed to investigate whether a lagged relationship existed between the dependent variable, namely directors’ remuneration, and the independent variables, as reflected by the various financial performance measures. Results from these regression analyses strengthened the findings of the study to show that a relationship existed between directors’ remuneration and the financial performance of the firms investigated. / AFRIKAANSE OPSOMMING: Direkteursvergoeding trek vir die afgelope paar dekades gereeld aandag, veral weens die korporatiewe skandale wat aan die lig gekom het rondom ongeveer die eeuwisseling. Normaalweg stel firmas direkteure aan om aandeelhouerswelvaart te verhoog. Daar bestaan ongelukkig ʼn opvatting onder talle aandeelhouers asook die algemene publiek dat direkteure oorbetaal word, en dat daar geen verwantskap bestaan tussen direkteursvergoeding en die finansiële prestasie van firmas om aandeelhouerswelvaart te verhoog nie. Redes wat aangevoer word vir hierdie sienings sluit in die tekort aan deursigtigheid, onvoldoende openbaarmaking deur firmas en vergoedingskomitees se botsende belange. Alhoewel Suid-Afrika geklassifiseer word as ’n wêreldleier op die gebied van korporatiewe bestuur, is daar steeds firmas wat nie voldoen aan die beginsels van die King-verslae nie. Hierdie navorsingstudie ondersoek die moontlike verwantskap tussen direkteursvergoeding en die finansiële prestasie van firmas. Die geselekteerde firmas vir die studie was genoteerde en voorheen-genoteerde firmas in die nywerheidsektor op die Johannesburgse Aandelebeurs (JSE), vir die periode 2002 tot en met 2010. Drie-en-negentig firmas het voldoen aan die vereistes om ingesluit te word in die steekproef van die studie. Al die geselekteerde firmas het doeltreffende vergoedingstrategieë in plek gehad om finansiële prestasie en groei in die firmas aan te spoor. Sekondêre data is vir die nege agtereenvolgende jare van die studie ingesamel. Veranderinge in regulasies voor en na die studieperiode het dit moeilik gemaak om periodes buite hierdie tydgleuf vir vergelykingsdoeleindes in te sluit. Dit is belangrik om daarop te let dat direkteursvergoeding nie die enigste faktor is wat ʼn firma se finansiële prestasie kan beïnvloed nie, maar slegs een van vele. In die lig hiervan, moet direkteursvergoeding en ander aansporingsmaatstawwe optimaal gebruik word om finansiële prestasie in firmas aan te moedig. Om ʼn duideliker skets rakende direkteursvergoeding te verkry, is vergoeding onderverdeel in vier sub-kategorieë veranderlikes. Die afhanklike veranderlikes van direkteursvergoeding is soos volg geklassifiseer: basiese salaris, bonusse (prestasie), opbrengste uit aandeelaankope en aandeleopsies en ʼn laaste kategorie wat as “ander” vergoeding geklassifiseer is. Hierdie “ander” vergoedingskomponent het grootliks bestaan uit pensioen- en mediese bydraes asook motor-, en telefoonvoordele. Ten einde die onafhanklike veranderlike, naamlik die finansiële prestasie van firmas, te meet, is die volgende mark- en rekeningkundige maatstawwe gebruik: omset, verdienste per aandeel (VPA), markwaarde toevoeging (MWT) en aandeelopbrengs. Met die ontleding van al die veranderlikes het beskrywende statistiek en inferensiële regressietoetse aangedui dat die data ʼn merkbare skewe verspreiding het, maar dat finansiële prestasie in die firmas ʼn beduidende faktor was wanneer direkteursvergoeding aangepas is. Bykomende regressietoetse is gedoen om te ondersoek of daar vertragingstydperke was tussen die afhanklike veranderlike, naamlik direkteursvergoeding, en die onafhanklike veranderlike, finansiële prestasie van firmas. Hierdie toetse het die studie se bevindinge bevestig dat daar inderdaad ʼn verwantskap bestaan tussen direkteursvergoeding en die finansiële prestasie van firmas.

This study provides evidence concerning the endogenous determination of managerial compensation contracts. To avoid the confounding effect of tax considerations, we limit our attention to the choice among long-term nonqualified incentive plans. Specifically, we consider a two-part decision faced by the firm: (1) whether to add an accounting-based "performance plan" to the existing portfolio of compensation contracts and (2) if the firm adopts a plan, the choice between a "relative" or an "absolute" performance measure. Based on some behavioral implications of performance plans which distinguish them from alternative contracts, we develop hypotheses which relate the adoption and design of a performance plan to the firm's general incentive contracting environment. We test these hypotheses using a choice-based sample, evenly divided between performance plan adopters and nonadopters. For the purposes of parameter estimation, we use the multinomial logit model to reflect the qualitative, hierarchical nature of the decision setting. Our results indicate that variables which proxy for the incentive environment can explain which firms will adopt a performance plan, and also the type of performance measure used by the adopting firms.

Current research on Career Ladder Teacher Incentive Plans indicates a need to go beyond the usual description of legislation, career ladder plans, teacher evaluation procedures and "intent" of the policymakers. This study uses a multivariate analysis of variance (MANOVA) to examine the interaction among teacher participation on a career ladder project, student achievement and teacher characteristics. Student achievement test scores over a two year period were analyzed. One group of students had teachers who participated for two years on a career ladder and the other group had teachers who did not participate the two years. One hundred forty teachers and two thousand two hundred sixty-three students in grades 3, 4 and 5 were analyzed in order to identify differences in test scores due to teacher participation. Contrasts were drawn between teachers as participants and non-participants on the career ladder, years of experience and education and their influence on how students scored on a State Mandated Norm Referenced Test, the Iowa Test of Basic Skills. Comparisons of the two groups in the study lead to some fairly consistent results. Even though there were no variables that impacted the achievement scores from a statistically significant standpoint, when the factor of "time" was defined in terms of Ladder and non-Ladder participation, the two year group showed statistically different results from the one year group. The results of this study indicate that a Career Ladder Program in the course of one year or two years would not significantly impact student achievement. However, the element of time is an important factor when looking at the potential for career ladder impact on student achievement. This factor should be considered in any quest for immediate versus long term success patterns of such plans.

This study examined the effects of a productivity-indexed pay for performance plan in a professional services firm. The new plan was implemented after productivity decreased under an existing plan. Performance of staff and senior level accountants was analyzed across three departments under a three-year baseline and a two-year intervention period. Several measures of productivity indicated that the intervention was effective in improving production, especially for employees with full annual workloads. Percentage of salaries earned in incentives was comparable for both the baseline and intervention periods. Possible explanations for trends in the data, weaknesses in the plan, and implications for future research are also discussed.

The purpose of this thesis is to explore the salary levels of college faculty.

Research thesis submitted in partial fulfilment (50%) of the Degree of Master of Commerce University of the Witwatersrand, Johannesburg, Faculty of Commerce, Law and Management – School of Accountancy 2015 / Executive remuneration has been under intense scrutiny by both investors and the media over the past 10 to 20 years because of the increasing magnitude of these remuneration packages (Otten, 2007; Sapp, 2007). This research report explores the relationship between executive director remuneration and the performance of publically listed companies (JSE) in South Africa, as well as ascertaining whether any relationship exists between director profiles and director remuneration. The study population comprised all South African companies listed on the JSE during 2014. The final sample consisted of 49 companies after the transformation of the data. A total of 708 director profiles were examined. The results of the study appeared to indicate a lack of correlation between executive director remuneration and company performance in publically listed South African companies. On the other hand, the results of the regression provided empirical support for the existence of a significant positive relationship between director remuneration and total assets. The results also illustrated that, in general, directors who are male over the age of 50 and who have served as directors for periods of between six to 10 years receive higher total remuneration compared to other classes of directors. It was also noted that race appeared not to play a role in director remuneration. Key words: Executive director remuneration, executive director profiles, company performance, ROA, Tobin’s Q / MT2017