CEO compensation & Organizational Performance

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Transcript of CEO compensation & Organizational Performance

Welcome

C.E.O. Compensation & Organizational Performance

Who is a C.E.O.?

The highest ranking executive in a company whose main responsibilities include developing and implementing high-

level strategies, making major corporate decisions, managing the overall operations and resources of a company.

Acting as the main point of communication between the board of directors and the corporate operations.

C.E.O. Responsibilities

Board Administration and Support

Financial, Tax, Risk and Facilities Management

Human Resource Management

Product and Service Delivery

 Raising fund(nonprofit-specific)

Community and Public Relations

Roles of C.E.O Manager

Visionary / Information Bearer

Leader

Decision Maker

Board Developer

Job Description of C.E.OEvaluating the success of the organization.Providing executive leadership across an

organization.Making high-level decisions about policy and

strategy.Reporting to the Board of Directors.

Keeping the Board of Directors informed about policy issues.

Retaining existing staff members.Setting goals.

Compensation• Recruiting and retain qualified employees.

• Modifying (through negotiations) practices of unions.

• Increasing or maintain morale/satisfaction.

• Rewarding and encourage peak performance.

Objective

Methodology

AnalysisLinking up between C.E.O and organization

performance

Relation between compensation and employee performance

Relation between C.E.O compensation and organization performance

AnalysisLinking up between C.E.O and organization

performance:

AnalysisRelation between compensation and

employee performance:

The compensation the more likely is the employee to protect the job and

give effort in it

Analysis

Relation between C.E.O compensation and organization performance

Regression AnalysisAB Bank Ltd.

Regression AnalysisBRAC Bank Ltd.

FindingsThere is a positive relationship with the organizational

performance.

There is a positive relationship with the C.E.O’s performance.

There is a positive relationship with the C.E.O’s performance and compensation.

Decisions

• There is a positive relationship between a C.E.Os compensation and organizations performance.

• When the C.E.Os compensation is fair, he/she will work more efficiently for the organization, there will be no chance to

commit immoral activity.

• Motivation and morale of the employees will increase since their leading head will push them forth to a better direction.

Thank You