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The Structure of Middle Management Remuneration Packages: An Application to Australian Mine Managers
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Pamela Kent, Michael Siu and Julie Walker
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Abstract
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This paper investigates the composition of remuneration
packages for middle managers and relates the structure
of remuneration contracts to firm-specific attributes.
A statutorily defined position in a single industry is
studied as an example of middle management. This allows
us to control for differences in task complexity across
managers and industry-induced factors that could
determine differences in remuneration contracts. Higher
risk firms are expected to pay their mine managers a
greater proportion of variable salaries and market
and/or accounting-based compensation than low-risk
firms. Results indicate that high-risk firms pay a
higher proportion of variable salaries and more
compensation based on market and/or accounting
performance.
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Download this article.
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Keywords
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MANAGEMENT REMUNERATION PACKAGES; INCENTIVES; RISK.
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Contact Details
Pamela Kent
Commerce Department
The University of Queensland
St Lucia QLD 4072
E-mail: kent@commerce.uq.edu.au
Michael Siu
Deloitte Touche Tohmatsu
Julie Walker
Commerce Department
The University of Queensland
St Lucia QLD 4072
E-mail: j.walker@commerce.uq.edu.au
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The authors are indebted to useful comments made
by Jenny Goodwin, Michelle Martin and an anonymous
referee. The views expressed in the paper do not represent
the views of Deloitte Touche Tohmatsu.
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