2017 Fiscal Year Annual Research Report
Does Corporate Law Matter to Executive Compensation?
| Project/Area Number |
16K17024
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| Research Institution | Nagoya University |
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Principal Investigator |
McGinty Sean 名古屋大学, 法学研究科, 特任准教授 (40706818)
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| Project Period (FY) |
2016-04-01 – 2018-03-31
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| Keywords | Corporate Law / Executive Compensation |
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| Outline of Annual Research Achievements |
This research has examined the relevance of corporate law rules to executive pay levels. It found that the corporate law rule giving shareholders a vote on director pay (art. 361 of Japan’s Companies Act) has some limited relevance to pay decisions (in Japan) through two avenues, encouraging some discipline in director pay requests and also allowing shareholders to object to pay they disapprove of. From a comparative perspective, however, the results do not suggest that this rule plays a determinative role in explaining the modest pay levels observed there.
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