Title : Board Independence, Nomination and Remuneration Committee, and Compensation in Indonesia
Authors:
- Princess Alfarisa
- Harymawan Faith
Department : Accounting
Journal Name : Accounting Journal
Kinds of Journal : Sinta 2
Keywords : Board Independence, Nomination and Remuneration Committee, Compensation.
Abstract:
This article aims to examine the relationship between independent commissioners and nomination and remuneration committee (KNR) and their interaction with directors' compensation using companions listed on the Indonesia stock exchange (IDX) and Ordinary Least Square Regression Technical. This study found that independent commissioners negatively associated with directors 'compensation which showed that the company with a higher ratio of independent commissioners provide less directors' compensation due to optimal supervision of management of management. In contrast, KNR is positively associated with directors' compensation which means that compans with Knr provide greater compensation because, according to the "Optimal Contracting Approach", the Board is assumed to design compensation schemes to shareholder value. Meanwhile, the interaction between the two variables is not associated with directors 'compensation because of the negating effect which shows that the company with independent commissioners and Knr do not have a tendency for directors' compensation.
For details : https://doi.org/10.24912/ja.v25i1.723