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The stricter the regulatory environment, the higher the willingness of the board to limit the agent's compensation to avoid a negative voting outcome.
Directors, being afraid of losing their own jobs or sued, are likely to reduce executive compensation to avoid any appearance of self-dealing.
The report acknowledges that remuneration committee members often fear executives will be tempted to leave or be poached by a rival and this drives higher compensation to avoid such outcomes.
The Mexican government has paid a United States company $16 million in compensation to avoid a protracted legal struggle that Mexican officials worry may scare international investors away from their country.
Nissan, part of the alliance with Renault of France and Mitsubishi Motors of Japan, has come under pressure since Ghosn was arrested in Japan and charged with hiding part of his compensation to avoid tax.
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This so-called moral hazard should be considered in the design of compensation schemes, to avoid scenarios where individual livestock producers take less care over biosecurity risks because the scheme offers sufficient compensation in case of outbreaks and loss (OECD 2011; OECD 2012).
These problems could be solved, for example through a "compensation principle" to avoid that distributive justice and progress will be harmed.
N.F.L. teams have almost never brought up workers' compensation — hoping to avoid even more claims, several lawyers said — so long-retired players can file for injuries sustained decades ago.
Is Said to Seek to Revise Pay System | The Royal Bank of Scotland is attempting to rework its executive compensation system, to avoid a repeat of the controversy that led the chief executive to give up his bonus, The Financial Times reports, citing an unidentified person close to the board.
Policymakers may consider enacting laws to include designs for corporate governance monitoring mechanisms, entrepreneurs may use this model to improve their own governance structures and compensation mechanisms to avoid financial bankruptcy, and investors may refer to it to ensure that 'losers' are excluded from their investment portfolios.
The meeting broke, however, without an agreement on compensation reforms to avoid a pro-cyclical focus on short-term returns, a policy championed by the European Union.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com