The impact of employee compensation composition on firm performance

• Main Authors: Tsai, Su-Chin, 蔡素卿
• Other Authors: 朱炫璉
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/73951207619999902695

碩士 === 國立臺北大學 === 會計學系 === 101 === Well-established employee compensation schemes can not only decrease the agent problem between managers and shareholders but also encourage the employee and furthermore enhance the company's value. Employee bonus expense which implemented in 2008 has a significant impact on the motivated effect of employee stock bonus scheme. The enterprise has been in danger of decrease in profitability、employee loyalty and turnover. How to use different incentive employee compensation schemes which are closely linked with company operating performance are key points to maintain the company's competitiveness. It is an important issue in academic and practices to balance the combination of cash dividend, stock dividend, and stock option (employee compensation combination) and to discuss the impact of employee compensation combination on firm performance after considering employee bonus expense. In this study I selecs list companies (except finance and insurance companies) for the period 2008-2011 as sample to examine the impact of employee compensation combination on firm performance after considering employee bonus expense. The results show that the more stock options are paid by enterprise, the less profitable is created by employees. If the share price does not have any appreciation, employee stock option has no motivation and reward for employees; it cannot retain talented people, lower employee turnover, and result in dilution effects on shareholders. Enterprise recognizes the employee stock option expense (bonus expense) that led to the decline in profit, so it shall pay cash divined as the motivational scheme.