Management compensation systems in MNCs and domestic firms. Cross-national empirical evidence

• This is a study of the relationship between institutional settings and managerial compensation systems, based on extensive cross-national survey evidence. • We compare differences in practices between Multinational Corporations (MNCs) and domestic firms across a range of capitalist archetypes. • We find that MNCs are more likely to promote compensation systems that incentivise managers in line with organisational performance compared to domestic firms. Our findings also reveal persistent diversity reflecting firm type and institutional setting. We find that the gap between MNCs and domestic firms in terms of the usage of incentive-related compensation is less pronounced in Liberal Market Economies than in other settings. This suggests that it is a combination of being an MNC and the specific home locale that moulds approaches to managerial compensation. This reflects considerable hybridisation of practices within and between settings.

In optics humidity compensation in NDIR exhaust gas measurements of NO2

NDIR is proposed for monitoring of air pollutants emitted by ship engines. Careful optical filtering overcomes the challenge of optical detection of NO2 in humid exhaust gas, despite spectroscopic overlap with the water vapour band.

Compensation between resolved wave driving and parameterized orographic gravity wave driving of the Brewer–Dobson circulation and its response to climate change

Following recent findings, the interaction between resolved (Rossby) wave drag and parameterized orographic gravity wave drag (OGWD) is investigated, in terms of their driving of the Brewer–Dobson circulation (BDC), in a comprehensive climate model. To this end, the parameter that effectively determines the strength of OGWD in present-day and doubled CO2 simulations is varied. The authors focus on the Northern Hemisphere during winter when the largest response of the BDC to climate change is predicted to occur. It is found that increases in OGWD are to a remarkable degree compensated by a reduction in midlatitude resolved wave drag, thereby reducing the impact of changes in OGWD on the BDC. This compensation is also found for the response to climate change: changes in the OGWD contribution to the BDC response to climate change are compensated by opposite changes in the resolved wave drag contribution to the BDC response to climate change, thereby reducing the impact of changes in OGWD on the BDC response to climate change. By contrast, compensation does not occur at northern high latitudes, where resolved wave driving and the associated downwelling increase with increasing OGWD, both for the present-day climate and the response to climate change. These findings raise confidence in the credibility of climate model projections of the strengthened BDC.

Energy compensation following consumption of sugar-reduced products: a randomized controlled trial

PURPOSE: Consumption of sugar-reformulated products (commercially available foods and beverages that have been reduced in sugar content through reformulation) is a potential strategy for lowering sugar intake at a population level. The impact of sugar-reformulated products on body weight, energy balance (EB) dynamics and cardiovascular disease risk indicators has yet to be established. The REFORMulated foods (REFORM) study examined the impact of an 8-week sugar-reformulated product exchange on body weight, EB dynamics, blood pressure, arterial stiffness, glycemia and lipemia. METHODS: A randomized, controlled, double-blind, crossover dietary intervention study was performed with fifty healthy normal to overweight men and women (age 32.0 ± 9.8 year, BMI 23.5 ± 3.0 kg/m2) who were randomly assigned to consume either regular sugar or sugar-reduced foods and beverages for 8 weeks, separated by 4-week washout period. Body weight, energy intake (EI), energy expenditure and vascular markers were assessed at baseline and after both interventions. RESULTS: We found that carbohydrate (P < 0.001), total sugars (P < 0.001) and non-milk extrinsic sugars (P < 0.001) (% EI) were lower, whereas fat (P = 0.001) and protein (P = 0.038) intakes (% EI) were higher on the sugar-reduced than the regular diet. No effects on body weight, blood pressure, arterial stiffness, fasting glycemia or lipemia were observed. CONCLUSIONS: Consumption of sugar-reduced products, as part of a blinded dietary exchange for an 8-week period, resulted in a significant reduction in sugar intake. Body weight did not change significantly, which we propose was due to energy compensation.

L'effet de compensation morale ou comment les 'bonnes actions' peuvent aboutir à une situation indésirable

Des recherches récentes arguent qu’une « bonne action » pourrait contribuer à « désinhiber » l’individu en lui permettant d’entreprendre des actions « moins souhaitables » par la suite. Cet effet de compensation morale reste un domaine peu étudié, en dépit des conséquences potentielles considérables sur l’efficacité des politiques publiques. L’objectif de notre contribution est de définir et de caractériser cet effet tout en soulignant les risques d’effets pervers associés. Nous utilisons à cet effet des études et des exemples tirés de divers domaines, comme la consommation alimentaire ou les comportements prosociaux, et identifions des pistes de recherche visant à mieux comprendre les conséquences directes et indirectes de cet effet, tout en mentionnant quelques stratégies envisageables afin d’atténuer ce biais.

Compensation and Rewards for Environmental Services (CRES) and efficient design of contracts in developing countries. Behavioral insights from a natural field experiment

The use of economic incentives for biodiversity (mostly Compensation and Reward for Environmental Services including Payment for ES) has been widely supported in the past decades and became the main innovative policy tools for biodiversity conservation worldwide. These policy tools are often based on the insight that rational actors perfectly weigh the costs and benefits of adopting certain behaviors and well-crafted economic incentives and disincentives will lead to socially desirable development scenarios. This rationalist mode of thought has provided interesting insights and results, but it also misestimates the context by which ‘real individuals’ come to decisions, and the multitude of factors influencing development sequences. In this study, our goal is to examine how these policies can take advantage of some unintended behavioral reactions that might in return impact, either positively or negatively, general policy performances. We test the effect of income's origin (‘Low effort’ based money vs. ‘High effort’ based money) on spending decisions (Necessity vs. Superior goods) and subsequent pro social preferences (Future pro-environmental behavior) within Madagascar rural areas, using a natural field experiment. Our results show that money obtained under low effort leads to different consumption patterns than money obtained under high efforts: superior goods are more salient in the case of low effort money. In parallel, money obtained under low effort leads to subsequent higher pro social behavior. Compensation and rewards policies for ecosystem services may mobilize knowledge on behavioral biases to improve their design and foster positive spillovers on their development goals.

Endogenous managerial compensation contracts in experimental quantity-setting duopolies

Given the ongoing debate on managerial compensation schemes, our paper offers empirical insights on the strategic choice of firms' owners over the terms of a managerial compensation contract, as a commitment device aiming at gaining competitive advantage in the product market. In a quantity setting duopoly we experimentally test whether firms' owners compensate their managers through contracts combining own profits either with revenues or with relative performance, and the resulting managerial behaviour in the product market. Prominent among our results is that firms' owners choose relative performance over profit revenue contracts more frequently. Further, firms' owners successfully induce a more aggressive behaviour by their managers in the market, by setting incentives which deviate from strict profit maximization.

Temperature (over) compensation in an oscillatory surface reaction

Biological rhythms are regulated by homeostatic mechanisms that assure that physiological clocks function reliably independent of temperature changes in the environment. Temperature compensation, the independence of the oscillatory period on temperature, is known to play a central role in many biological rhythms, but it is rather rare in chemical oscillators. We study the influence of temperature on the oscillatory dynamics during the catalytic oxidation of formic acid on a polycrystalline platinum electrode. The experiments are performed at five temperatures from 5 to 25 degrees C, and the oscillations are studied under galvanostatic control. Under oscillatory conditions, only non-Arrhenius behavior is observed. Overcompensation with temperature coefficient (q(10), defined as the ratio between the rate constants at temperature T + 10 degrees C and at T) < I is found in most cases, except that temperature compensation with q(10) approximate to I predominates at high applied currents. The behavior of the period and the amplitude result from a complex interplay between temperature and applied current or, equivalently, the distance from thermodynamic equilibrium. High, positive apparent activation energies were obtained under voltammetric, nonoscillatory conditions, which implies that the non-Arrhenius behavior observed under oscillatory conditions results from the interplay among reaction steps rather than, from a weak temperature dependence of the individual steps.

Addressing Compensation Rates Below Market Value

Strategies for Recruiting and Retaining Faculty and Staff (Business Affairs Forum, attached): Many institutions face limitations on the salary rates they can offer faculty and staff due to decreases in state funding, which can create challenges in recruitment and retention of qualified employees. This brief explores strategies institutions use to lessen the impact of budget limitations on faculty and staff salaries and to recruit and retain faculty in spite of limited salary offerings.

Evaluating Department Chair and Program Director Compensation

This brief examines compensation policies for department chairs and program directors at public institutions, with a particular focus on the factors that determine compensation. The report includes an analysis of department chairs and program director responsibilities, monetary compensation, and non-monetary compensation.

Performance-based compensation vs. guaranteed compensation: contractual incentives and performance

Top management from retail banks must delegate authority to lower-level managers to operate branches and service centers. Doing so, they must navigate through conflicts of interest, asymmetric information and limited monitoring in designing compensation plans for such agents. Pursuant to this delegation, the banks adopt a system of performance targets and incentives to align the interests of senior management and unit managers. This paper evaluates the causal relationship between performance-based salaries and managers’ effective performance. We use a fixed effects estimator to analyze an unbalanced panel of data from one of the largest Brazilian retail banks during the period from January 2007 to June 2009. The results indicate that agents with guaranteed variable salary contracts demonstrate inferior performance compared with agents who have performance-based compensation packages. We conclude that there is a moral hazard that can be observed in the behavior of agents who are subject to guaranteed variable salary contracts.

Load compensation in four-wire electrical power systems

This work describes a methodology for power factor control and correction of the unbalanced currents in four-wire electric circuits. The methodology is based on the insertion of two compensation networks, one wye-grounded neutral and another in delta, in parallel to the load. The mathematical development has been proposed in previous work [3]. In this paper, however, the methodology was adapted to accept different power factors for the system to be compensated. on the other hand, the determination of the compensation susceptances is based on the instantaneous values of the load currents. The results are obtained using the MatLab - Simulink environment.

Design of fuzzy regulators with optimal initial conditions compensation

In almost all cases, the goal of the design of automatic control systems is to obtain the parameters of the controllers, which are described by differential equations. In general, the controller is artificially built and it is possible to update its initial conditions. In the design of optimal quadratic regulators, the initial conditions of the controller can be changed in an optimal way and they can improve the performance of the controlled system. Following this idea, a LNU-based design procedure to update the initial conditions of PI controllers, considering the nonlinear plant described by Takagi-Sugeno fuzzy models, is presented. The importance of the proposed method is that it also allows other specifications, such as, the decay rate and constraints on control input and output. The application in the control of an inverted pendulum illustrates the effectively of proposed method.