Russia and the United States: A Comparison of Governance Practices, Compensation, and Sustainability
|The first part of this paper will examine executive compensation in both the United States and Russia. We will discuss the fact that in the United States, CEOs’ salaries are exponentially greater than the salaries of employees, regardless of performance. We will also address the idea that certain CEOs’ salaries are high due solely to the fact that other CEOs’ salaries are high. The paper will then highlight the fact that Russian executives do not receive incentives and benefits based on performance. Also in Russia, CEOs of public companies have a much higher salary that drastically increases yearly, while the salary of private companies remains quite consistent. This comparison will demonstrate the differences in executive compensation between the two countries. The second area of focus within this paper discusses the issues that surround the board of directors in Russia and the United States. We will address the differences in governance structures, board structure and composition, and duality. Within the board structure, we also focus on the different committees that comprise boards in both countries. We also discuss the impact of Russia’s strong central state government and its involvement with public companies. This will help illustrate the distinct differences the government plays in each country’s economies, and how the board of directors plays a role in corporate governance. The third section of this paper will discuss the recent scholarly findings in regards to executive compensation and sustainability. Research was focused on executive compensation comparison between state-owned businesses and private sectors, compensation differences between industries, and a brief discussion on the biggest Russian CEO payout in history. This section also illustrates the roots of Russia’s sustainability problems, and the difficulties private sector businesses face in the effort to implement successful sustainability legislation and its enforcement.
|Drake Management Review
|Drake Management Review;Volume 3, Issue 2, April 2014
|Russia and the United States: A Comparison of Governance Practices, Compensation, and Sustainability