In a country where conformity and harmony are valued, Japanese multinationals have become open to appointing foreign CEOs, who are deemed to be able to effect change faster than a Japanese CEO, as part of corporate strategies to conquer overseas markets. But one difficulty in hiring these foreign CEOs is that their pay is much higher than their Japanese counterparts, who are famous for their relatively modest salaries. A study on the impact of firm strategy and foreign ownership sheds more light on the strategy-compensation relationship in Japanese firms.
Business | Human Resources Management
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Making sense of the strategic value behind CEO pay cheques. (2012). Knowledge@SMU.
Available at: http://ink.library.smu.edu.sg/ksmu/125