| Abstract [eng] |
The relevance of the subject. CEO pay is an individual, complex and responsible decision of the board company that affects not only the company's structure and characteristics, shareholder attitudes, or market trends. The CEO's pay system strategy has a significant impact on the company in the long run. The pay of executives in companies is reviewed regularly, taking into account the size, structure, and performance of the company. The COVID-19 pandemic provides a unique opportunity to examine how the boards of various organizations have dealt with these issues during the economic slowdown. Unlike previous recessions, executives are not responsible for causing the current recession. Nor are they responsible for making inappropriate strategic decisions when those decisions are proposed and approved by the board. Instead, business leaders had to respond to the economic slowdown caused by external forces by covering costs for employees, shareholders, and other stakeholders. The object of research: the factors that determine the changes in the pay structure of the CEO during the COVID-19 pandemic. The aim of the research: to reveal the factors determining the changes in the pay structure of the CEO during the COVID-19 pandemic. Objectives: 1. to substantiate theoretically the pay structure of CEO and the factors determining it; 2. to reveal the impact of the COVID-19 pandemic on the determinants of CEO pay by developing a conceptual theoretical research model; 3. to investigate empirically the determinants of changes in the changes of CEO pay structure during the COVID-19 pandemic. Research methods: the research is carried out using the results of the analysis of scientific literature, their systematization and interpretation. Empirical research is conducted using the method of qualitative research semi-structured interview. The research results are systematized, compared and summarized. The main result of the work. The analysis of the scientific literature discussed and described the structure of CEO pay, theories underpinning CEO pay and the factors affecting them, as well as the impact of the COVID-19 pandemic on organizations. Based on the results of the literature analysis, a theoretical research model was developed, which consists of the impact of the COVID-19 pandemic on organizations (micro and macro level), factors influencing CEO pay (external factors, personal and organizational characteristics), and CEO pay structure (salary, benefits, training and education and working environment). The analysis of the research found that most of the changes in the pay structure of the CEO were made in the salary category. This resulted in a reduction in the basic salary, the abolition of annual bonuses or the adjustment of targets for them and other salaries, a freeze on wages, and a reduction in dividends. The adjustment of goals is associated with a decrease in the performance of the organization. Also, there is a trend that organizations that have reduced salaries for all employees have also reduced base salaries for CEO. Managers faced deterioration in the work–life balance and more responsibility. Based on the results of the research, it can be assumed that both the organizational and personal characteristics of the CEO, as well as external factors, had a complex effect on the changes in the structure of CEOs’ pay. It has been observed that CEOs tend to take on even greater responsibilities during the COVID-19 pandemic, leading to a deterioration in the work–life balance due to the need for rapid decisions. CEO had to take on more responsibility and demonstrate leadership. |
