Abstract
This research investigates the perceptions of employees regarding executive
compensation within State-Owned Enterprise (SOE). Executive compensation in
SOEs has been a topic of considerable interest and debate due to its potential
implications for organisational performance, fairness, and stakeholder trust. The study
aims to explore employees' perceptions of executive compensation, including their
attitudes towards fairness, transparency, and alignment with organisational goals.
Additionally, the research examines how these perceptions influence employee
morale, motivation, and organisational commitment. Through a qualitative approach,
data was collected from interviews conducted with employees at different levels within
the selected SOE.
The study found that employees' understanding of executive compensation in the SOE
is significant, highlighting varied levels of comprehension regarding its components
and importance. Perceptions of fairness and equity in executive compensation were
pivotal, influencing employee satisfaction, trust, and organisational culture.
Transparency and effective communication about executive compensation were
critical for shaping perceptions of fairness and organisational values. The impact of
executive compensation on employee motivation and engagement was complex, with
disparities potentially demotivating ordinary employees. Finally, alignment between
executive compensation and organisational values and goals was crucial for
promoting a supportive workplace environment and enhancing organisational
performance.
The study contributes to the existing literature by providing insights into the complex
dynamics surrounding executive compensation in SOEs and its impact on employee
attitudes and behaviours. Recommendations are offered for the SOE management to
enhance transparency, fairness, and communication regarding executive
compensation practices, ultimately fostering a positive organisational climate and
employee engagement.