Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom

Yves  Gendron; Bertrand  Malsch; Marie-Soleil  Tremblay

doi:10.15446/innovar.v31n82.98419

Publicado

2021-10-01

Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom

De vuelta a lo básico: desafiando la complejidad y la responsabilidad en la sala de junta

Voltando ao básico: desafiando a complexidade e a responsabilidade na sala de reuniões

DOI:

https://doi.org/10.15446/innovar.v31n82.98419

Palabras clave:

Boards of directors, complexity , consulting firms, corporate governance, executive compensation , expertise (en)
conselhos diretores, complexidade , empresas de consultoria, expertise , governança corporativa, remuneração dos executivos (pt)
junta directiva, complejidad, firmas consultoras, gobierno corporativo, compensación de los ejecutivos, experiencia (es)

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Autores/as

Yves Gendron Université Laval https://orcid.org/0000-0002-7414-7764
Bertrand Malsch Queen’s University https://orcid.org/0000-0001-6732-3742
Marie-Soleil Tremblay École Nationale d’Administration Publique https://orcid.org/0000-0001-9507-3349

This paper investigates the dynamics of complexity and expertise in the context of compensation committees (ccs). Drawing on semi-structured interviews, mostly with cc members and consultants, we bring to light two axes of subordination that impact the mindset of corporate governance participants, and may ultimately undermine directors’ degree of accountability to shareholders. The first axis involves cc members’ subordination to consultant expertise, which tends to be considered as an indispensable ally in dealing appropriately with the webs of complexity that allegedly characterize executive compensation. Nourished partially by the first axis, the second implies subservience to these webs of complexity, which are widely presumed and naturalized by cc members and the consulting experts they employ. One of our main contributory statements is to question the ascendancy of complexity in the boardroom, casting doubt on one of the key assumptions upon which practices and expertise in contemporary corporate governance institutions are built and promoted. We also question the extent of epistemic dependency in many compensation committees, where much of the knowledge necessary to properly operate the repertoire of practices (deemed necessary to address the problem of executive compensation determination) is not primarily in the hands of cc members, but rather in those of consultants.

este artículo estudia la dinámica de la complejidad y la experiencia en el contexto de los comités de compensación (cc). A partir de entrevistas semiestructuradas, principalmente con miembros y consultores de cc, se revela la existencia de dos ejes de subordinación que impactan la mentalidad de los participantes en instancias de gobierno corporativo y que, en última instancia, podrían llegar a afectar el grado de responsabilidad de los directores ante los accionistas. El primer eje involucra la subordinación de los miembros de un cc ante la experiencia de consultores externos, quienes tienden a ser considerados aliados imprescindibles en el manejo de las redes de complejidad que aparentemente caracterizan la compensación de los ejecutivos. Alimentado en parte por el primer eje, el segundo da cuenta del sometimiento a dichas redes de complejidad, que son ampliamente asumidas y naturalizadas por los miembros de un cc y los consultores que estos contratan. Una de las principales contribuciones de esta investigación tiene que ver con el cuestionamiento al predominio de la complejidad dentro de las juntas directivas, con lo cual se pone en tela de juicio uno de los supuestos clave sobre los que se construyen y promueven las prácticas y la experiencia de las instituciones contemporáneas de gobierno corporativo. También cuestionamos el alcance de la dependencia epistémica en muchos cc, donde gran parte del conocimiento necesario para operar adecuadamente el repertorio de prácticas existentes (consideradas indispensables para establecer la compensación ejecutiva) no está en manos de los miembros del cc de una organización, sino en poder de su equipo de asesores.

o presente trabalho investiga a dinâmica da complexidade e da expertise no contexto dos comitês de remuneração (ccs, na sigla em inglês). A partir de entrevistas semiestruturadas, principalmente com membros e consultores do cc, trazemos à luz dois eixos de subordinação que impactam a mentalidade dos participantes da governança corporativa e podem, em última instância, comprometer o grau de responsabilização dos diretores com os acionistas. O primeiro eixo envolve a subordinação dos membros do cc à expertise de consultores, que tende a ser considerada como uma aliada indispensável para lidar adequadamente com as teias de complexidade que supostamente caracterizam a remuneração executiva. Parcialmente nutrido pelo primeiro eixo, o segundo implica uma subserviência a essas teias de complexidade, que são amplamente presumidas e naturalizadas pelos membros do cc e pelos especialistas em consultoria empregados por eles. Uma de nossas principais contribuições é questionar a ascensão da complexidade na sala de reuniões, levantando dúvidas sobre um dos principais pressupostos sobre o qual as práticas e a expertise em instituições contemporâneas de governança corporativa são construídas e promovidas. Questionamos também a extensão da dependência epistêmica em muitos comitês de remuneração, em que grande parte do conhecimento necessário para operar adequadamente o repertório de práticas (consideradas necessárias para enfrentar o problema da determinação da remuneração executiva) não está principalmente nas mãos dos membros do cc, mas sim nas mãos dos consultores.

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APA

Gendron, Y. ., Malsch, B. . y Tremblay, M.-S. . (2021). Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom. Innovar, 31(82), 161–178. https://doi.org/10.15446/innovar.v31n82.98419

ACM

[1]

Gendron, Y. , Malsch, B. y Tremblay, M.-S. 2021. Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom. Innovar. 31, 82 (oct. 2021), 161–178. DOI:https://doi.org/10.15446/innovar.v31n82.98419.

ACS

(1)

Gendron, Y. .; Malsch, B. .; Tremblay, M.-S. . Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom. Innovar 2021, 31, 161-178.

ABNT

GENDRON, Y. .; MALSCH, B. .; TREMBLAY, M.-S. . Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom. Innovar, [S. l.], v. 31, n. 82, p. 161–178, 2021. DOI: 10.15446/innovar.v31n82.98419. Disponível em: https://revistas.unal.edu.co/index.php/innovar/article/view/98419. Acesso em: 15 jul. 2024.

Chicago

Gendron, Yves, Bertrand Malsch, y Marie-Soleil Tremblay. 2021. «Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom». Innovar 31 (82):161-78. https://doi.org/10.15446/innovar.v31n82.98419.

Harvard

Gendron, Y. ., Malsch, B. . y Tremblay, M.-S. . (2021) «Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom», Innovar, 31(82), pp. 161–178. doi: 10.15446/innovar.v31n82.98419.

IEEE

[1]

Y. . Gendron, B. . Malsch, y M.-S. . Tremblay, «Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom», Innovar, vol. 31, n.º 82, pp. 161–178, oct. 2021.

MLA

Gendron, Y. ., B. . Malsch, y M.-S. . Tremblay. «Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom». Innovar, vol. 31, n.º 82, octubre de 2021, pp. 161-78, doi:10.15446/innovar.v31n82.98419.

Turabian

Gendron, Yves, Bertrand Malsch, y Marie-Soleil Tremblay. «Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom». Innovar 31, no. 82 (octubre 15, 2021): 161–178. Accedido julio 15, 2024. https://revistas.unal.edu.co/index.php/innovar/article/view/98419.

Vancouver

1.

Gendron Y, Malsch B, Tremblay M-S. Getting Back to Basics: Challenging Complexity and Accountability in the Boardroom. Innovar [Internet]. 15 de octubre de 2021 [citado 15 de julio de 2024];31(82):161-78. Disponible en: https://revistas.unal.edu.co/index.php/innovar/article/view/98419

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1. Oriane Couchoux. (2024). Navigating knowledge and ignorance in the boardroom: A study of audit committee members' oversight styles. Contemporary Accounting Research, 41(1), p.459. https://doi.org/10.1111/1911-3846.12890.

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