Executive Compensation

Authors

  • Andreas Cahn (co-author)
  • David C. Donald (co-author)
  • Giorgi Makharoblishvili (translator)

Keywords:

Executive compensation; corporate governance; moral hazard; performance-based remuneration; shares and stock options; management incentives; fiduciary duties; risk-taking.

Abstract

The chapter reviews the advantages and risks of executive compensation systems in the context of corporate governance. Particular attention is paid to performance-based remuneration as an instrument for motivating management, as well as to the moral hazards that arise in cases of compensation through shares and stock options. The study analyzes the role of compensation in corporate management, its impact on risk-taking and market discipline, and provides comparative examples from U.S. and European practice. The author concludes that the proper design of compensation schemes is decisive for their effectiveness and for the protection of corporate interests.

Author Biography

Giorgi Makharoblishvili (translator)

Doctor of Law, Associate Professor at Ivane Javakhishvili Tbilisi State University.

References

References are not included.

Published

2025-12-30

How to Cite

Cahn (co-author), A., Donald (co-author), D. C., & Makharoblishvili (translator), G. (2025). Executive Compensation. Journal of Law , (2). Retrieved from https://jlaw.tsu.ge/index.php/JLaw/article/view/10709

Issue

No. 2 (2025): Journal of Law

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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