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"We continue to believe that a high percentage of variable compensation is what's appropriate".
Her particular concern for flexibility on a rule that 50% of variable compensation be paid in non-cash.
That implies investors value its performance fees, or "carry," net of variable compensation costs, at only a little more than three times.
The board said a "substantial portion of variable compensation, such as 40 to 60 percent," should be deferred over a period of no less than three years.
The results also indicate that higher project uncertainty is associated with a lower level of variable compensation.
Moreover, organizational structure, through its effect upon the allocation of uncertainty among organizational participants, also affects the level of variable compensation.
Similar(50)
RBS's board said it "acknowledges that this outcome creates a commercial and prudential risk which it must try to mitigate within the framework of a 1 1 fixed to variable compensation ratio".
Credit Suisse, which set aside 6.87 billion francs in bonuses for 2009, said last month that it deferred 40 percent of the variable compensation into future years.
It appears that bonus taxes motivate managers to engage in risky activities as they reduce the volatility of their variable compensation.
The total included a payment of almost $450,000 in "variable compensation" — a long-service entitlement for reaching 40 years employment at FIFA.
He enjoys 10% of the firm's pretax profit and "variable compensation" instead of taking a salary, bonus or stock options.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com