Executive compensation policy and company performance in Japan

Katsuyuki Kubo*

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

36 Citations (Scopus)


The purpose of this paper is to analyse whether companies' "way to pay their director" matters or not. Firstly, we fail to find a positive relationship between the performance-pay sensitivity and company performance. Thus, these results do not support our hypothesis that those companies that intensify the performance-pay sensitivity are more likely to improve their performance. In addition, this research fails to find a positive relationship between the change of pay policy and performance. These results are consistent with previous studies that directors' pay is not designed to motivate directors to work toward shareholders' value.

Original languageEnglish
Pages (from-to)429-436
Number of pages8
JournalCorporate Governance: An International Review
Issue number3
Publication statusPublished - 2005 May


  • Board of directors
  • Corporate governance
  • Executive compensation

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation


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