The MAP Commission feels strongly that it is time to restructure key support functions and to realign programs and services to eliminate duplication of effort, inefficiencies and poor service quality. The MAP Commission's study and all previous studies confirm that state government is, in many senses, broken, and is in need of repair. The members of MAP believe this comprehensive report adds one more compelling reason to rethink and reinvent state government in the Palmetto State.
PurposeThis paper seeks to examine the differences between executives and investors in the perception of determinant factors in executive compensation.Design/methodology/approachFrom a survey instrument comprised of archival executive compensation determinant items, a factor analysis is performed to examine the construct determinant perceptions unique to executives and non‐executive investors.FindingsThe authors find differences in factors between executives and non‐executive investors in a manner expected by agency theory. Non‐executive investors place greater weight on factors related to performance and less weight on human capital factors, while executive investors place greater weight on human capital factors in determining executive compensation.Research limitations/implicationsThis study is limited in that the sample may not be representative of the population of chief executive officers or shareholders in the USA.Practical implicationsDiffering factors suggest that there is a misalignment of measures desired to be the foundation of executive compensation. The differing measures used to potentially motivate agents (executives) by principals (investors) results in an agency cost.Originality/valueThe authors have documented a difference between executives and investors in factors desired to determine executive compensation.
From the adoption of the Constitution in 1787, the executive department has been the primary vehicle through which the government of the United States has administered its programs. Their organization and effectiveness are therefore matters that demand constant attention.
