The Kostyuk Report: Executive Compensation Practices in Ukraine

Abstract

The main research question of this research is: "Does an ownership structure influence performance of executive compensation in Ukraine?". A very detailed investigation of the most active Ukrainian joint stock companies has been undertaken. Total number of the companies under research is 50. Period of investigation is from 1998 to 2003. Fixed-based compensation is still the major form to reward executives at Ukrainian companies. From this perspective, Ukrainian practices for rewarding executives belongs to Continental model, developed in Germany. It can be explained by lack of: appropriate legislation, allowing stock based compensation; liquid stock market; lack of knowledge of directors (members of supervisory boards) on incentive based compensation; lack of control and executive monitoring functions by supervisory board.

Основне питання даного дослідження: «Чи є в структурі власності впливу виконавчих компенсацій в Україні?». Проведено дуже докладне дослідження найбільш активних українських акціонерних товариств . Загальна кількість компаній в рамках дослідження склала 50 об'єктів.