Corporate personality: the Achilles' heel of executive remuneration policy. Issue 3 (6th May 2014)

• Record Type: Journal Article
• Authors: Nyombi, Chrispas
• Is Part Of: International journal of law and management. Volume 56:Issue 3(2014)
• Page Start: 184
• Page End: 196
• Publication Date: 2014-05-06
• Subjects: Bank bonuses -- Corporate personality -- Executive remuneration -- Remuneration -- Reward for failure -- Salomon; Labor laws and legislation -- Great Britain -- Periodicals; Trade regulation -- Great Britain -- Periodicals; Labor laws and legislation -- Great Britain -- Cases; Trade regulation -- Great Britain -- Cases; 346.0664
• DOI: 10.1108/IJLMA-05-2012-0017
• Languages: English
• ISSNs: 1754-243X

Abstract

Abstract : Purpose: – This paper aims to explore the role corporate personality has played in the battle between executive remuneration and fairness, which is linked to rewarding performance. This paper also aims to explore some of the policy measures taken by the UK Government to curb excessive remuneration especially in the banking sector. Design/methodology/approach: – This paper employs an analytical approach. An analytical approach relies on the collection of new information upon which to base any conclusions. The research supports the arguments being made in the paper. Findings: – The paper shows how the ruling in Salomon, over a century ago, that cemented corporate personality and limited liability in the UK, is hampering many of the measures aimed at rewarding performance and promoting fairness in relation to executive remuneration. Originality/value: – Limited research has been done on executive remuneration. Since executive pay has recently hit the media agenda, this paper purports to tackle a current and ongoing issue.