Operating a Company Alongside Twenty-first Century Financial and Environmental Social Concerns: Analysing the Impact of Executive Directors’ Compensation on Company Performance

Abstract

This dissertation revisits corporate governance mechanisms in the light of various theories of corporate governance. This study examines the relationship between the executive directors' compensation and the company's financial, social and environmental performance; in the background, internal corporate governance mechanisms components affect the company's performance. Further, it reviews the legal developments taking place in the UK concerning executive compensation and its impact on company performance. The nexus between CSR and the executive directors' compensation is discussed to understand its effect on executives' compensation. In addition, this dissertation presents measures and suggestions for the policymakers that are likely to improve the quality of internal corporate governance mechanisms in companies, which may help improve the company's overall performance.