Personnel Review, 33(5), p.561-582 Directors’ Remuneration: The Need For a Geo-Political Perspective by © Nada K. Kakabadse Professor in Management and Business Research Northampton Business School University College Northampton Park Campus, C21 Boughton Green Road Northampton, NN2 7AL, United Kingdom International Tel: (0044) (0)1604 892197 E-mail:
[email protected] © Andrew Kakabadse Professor of International Management Development Cranfield School of Management Cranfield, Beds, MK43 OAL, United Kingdom International Tel: (0044) (0)1234 754400 International Fax: (0044) (0)1234 752382 E-mail:
[email protected] © Alexander Kouzmin Professor in Management Graduate College of Management Southern Cross University Tweed Heads NSW 2485, Australia International Tel: 00617 5506 9322 E-mail:
[email protected] © N. Kakabadse, © A. P. Kakabadse, © A. Kouzmin This document may not be copied in any form, in whole or in part, without the express permission of one of the authors. Any correspondence should be addressed to Professor Nada Kakabadse Directors’ Remuneration: The Need For a Geo-Political Perspective There are many ways to construct an incentive program. However, most compensation plans tend to be focused on profitability and profitability-related accomplishments with little or no incentive for corporate social responsibility. Director’s compensation continues to climb with the United States leading and Britain following modestly behind. The question as to where fair pay ends and over-compensation begins - and what that means for the community - is rarely raised. In order to understand the impact of fair and over-compensated director’s pay on other stakeholders, a geo-political perspective is proposed that builds on knowledge of existing theories of the firm.1 Key words: Directors’ remuneration, geo-politics of executive pay, executive pay structures, executives’ pay models, executive pay incentives.