The Difference between Senior Manager Compensation and Salaries of Full-Time Employees in Non-Management Positions on Corporate Governance in Taiwan

摘要

This study examines the impact of differences between senior manager compensation and salaries of full-time employees in non-management positions (DME) on corporate governance evaluation system (CGES). It seeks to understand whether corporate governance can consistently promote the success of company insiders, outsiders, and improve the corporate governance structure’s supervision. Empirical results show that DME has a positive influence on CGES in Big 4 CPA firms, which have better corporate governance evaluation levels. Deloitte, PWC, and KPMG have significantly better evaluation ratings of corporate governance. In addition, different types of conglomerate control for DME manager governance and co-governance have greater positive effects. Finally, non-change lead CPA, change concurring CPA, and non-change concurring CPA show that companies have better corporate governance evaluation. To encourage listed companies to attach importance to the level of corporate governance and assist in the effectiveness of capital market operations, a company should review and promptly implement an overall remuneration policy to comply with corporate governance trends. All listed companies can gradually implement and improve corporate governance to assist investors and other companies in understanding their effectiveness.