The allocation of performance shares to corporate officers: a theoretical analysis in relation to the role and composition of the Remuneration Committee

Abstract

Abstract: The aim of the article is to study the extent to which corporate officers or remuneration committees (RCs) can influence the allocation of performance shares, and to do so under more attractive tax regulations than those for stock options (August 2015 - December 2016). There are two main theoretical approaches. According to agency theory, the compensation board acts in the interests of shareholders or, more broadly, of stakeholders, and exercises an incentive or disciplinary role towards the executive. According to managerial power theory, executives may exert influence over the Remuneration Committee by facilitating the allocation of performance shares...during this propitious period. The article justifies why studying the composition of the RC would not allow us to decide between these two supposed roles.