EXECUTIVE COMPENSATION(15 000 words)
1) A CRITICAL REVIEW AND SYNTHESIS OF THE EXECUTIVE COMPENSATION LITERATURE.(30% OF DISSERATION MARKS)
Following areas should be covered as part of their review.
· The theatrical links between executive compensation and incentives within the context of agency theory , including how theatrical concepts of executive’s incentives are translated into empirical measures.
· The empirical challenges in disentangling the causes and effects of equity-based incentives
· The empirical evidence regarding the design and economic effects of different executive compensation structures.
· While the review should cover the classic papers in executive compensation, depending on the particular research question addressed, differences in compensation arrangements in banks should be highlighted and related evidence described.
· Also, it might be necessary to touch on evidence on international differences in CEO pay and review important regulations relating to executive compensation in countries that will be examined in the dissertation.
2) LARGE SAMPLE STATISTICAL ANALYSIS (35% OF DISSERTATION MARKS): The analysis is intended to compare the executive compensation across different industries and/or different countries.
Examples research questions include.
· How does executive compensation vary with different firm characteristics (investment opportunity set, firm risk, profitability etc.)?
· How does compensation differ between non-financial industries and banks?
· How did equity-based incentives affect the risk taking and/or performance of banks?
· MARKS WILL BE AWARDED FOR THEORETICAL SOUNDNESS AND ORIGINALITY
3) SMALL SAMPLE ANALYSIS: AN ANALYSIS OF EXECUTIVE COMPENSATION ARRANGEMENTS IN INTERNATIONAL BANKS (35% OF DISSERTATION MARKS) : Examine a small sample of annual reports of largely publicly listed banks from two or more countries and collect data on CEO compensation, firm and board characteristics. The objective is to compare executive pay levels and pay structure of banks from different countries. In doing this, difference in governance/executive compensation regulations should be taken into account.
Examples of research questions are
· Are there substantial international differences in pay levels and pay structure?
· What drives differences in pay levels and structure in international banks (eg firm characteristics, ownership structure, board characteristics)?
THE DISSERTATION SHOULD CONTAIN ALL 3 SECTIONS AND SHOULD REFLECT ORIGINAL THINKING AND ANALYSIS . LACK OF INDEPENDENCE, PLAGIARISM AND RELIANCE ON UNATTRIBUTED DIRECT QUOTATION FROM SOURCE MATERIAL WILL NOT BE TOLERATED