[01] John Nkeobuna Nnah Ugoani, Department of Management Sciences, College of Management and Social Sciences, Rhema University, Aba, Nigeria.

The study was designed to evaluate the effect of executive compensation management on productivity among SMEs in Nigeria and make recommendations. Compensation is a primary motivator for employees who bring their labour in exchange for rewards. People look for jobs that not only suit their talents and creativity, but also that which compensate them both in terms of salary and other benefits. Due to competition, traditional methods of compensation that involves set pay levels with regular annual increases are no longer fashionable. As businesses change their focus, their approach to compensation must change so as to retain competent executives. This is necessary because traditional compensation methods may hold an enterprise back from adequately compensating its best employees. With about 17.3m SMEs in Nigeria good compensation management will provide the platform for executive manpower development that will help in driving the economy. The exploratory research design was used for the study. Data were analyzed using the descriptive statistical methods and it was found that executive compensation management correlates positively with productivity.

Traditional Compensation, Executive Compensation, Adjustments, Pay-for-Knowledge, Pay-for-Performance, Equity Theory

[01] Aganga, O. (2012). Nigeria has about 17.3m SMEs. The Nation, vol. 7, No. 2143, pp: 12. [02] Armstrong, M. (2004) A Handbook of Human Resource Management Practice. 9th Edition, New Delhi, Kogan Page. [03] Asika, N. (2004) Research Methodology: A Process Approach. 1st Edition Lagos. Mukusamn& Brothers Enterprises. [04] Bebchuk, L. A. and Fried, J. M (2004) Pay Without Performance: The Unfulfilled Promise of Executive Compensation. Cambridge, Harvard University Press. [05] Behan, B. (2011) Great Companies Deserve Great Boards: A CEO’s Guide to the Boardroom Palgrave, MacMillian. [06] Boone L. E,andJurt D. C. (1999). Contemporary Business 9th Edition, Oriando, FL Harcourt Brace College Publishers. [07] Bounds G. M, and Lamb C. W, Jr. (1998) Business, Cincinnati, OH: South-Western College Publishing. [08] Carpenter, M. A and Sanders, W. G (2002). 10 Top Management Team Compensation: The Missing Link Between CEO Pay and Firm Performance? Strategic Management Journal (23) 367 – 375. [09] Champagne, P. J, McAfee R. B (1989) Motivating Strategies for Performance and Productivity. New York, Quorum Books. [10] Core, J. Robert, W. and David, E. (1999) Corporate Governance, Chief Executive Officer Compensation and Firm Performance. Journal of Financial Economics, 11, 371-406. [11] Davies, J. H, Schoorman, F. D, and Donaldson, L. (1997) Toward a Stewardship Theory of Management. Academy of Management Review, 22, 20-47. [12] De Jonge, A. (2008) Corporate Governance and China’s It-Share Market. Cheltenham, U.K, Northampton, M. A, Edward Elgor. [13] Dockop, J. R (1988) Determinants of Chief Executive Officer Compensation. Industrial and Labour Relations Review, 41:215-226. [14] Dockop, J. R, Mangel, R, and Cirka, C. C (1999) Getting More than you pay for: Organizational Citizenship Behaviour and Pay-for-performance Plans. Academy of Management Journal, 42:420-428. [15] Drucker, P. F (1998) Peter Drucker on the Profession of Management. Boston: A Harvard Business Review. [16] Dutter, P. H (1972) Compensation Plans for Executives In J. J. Famularo(ed) Handbook of Modern Personnel Administration. New York, McGraw-Hill Book Company. Pp: 32 – 14. [17] Essiet, D. (2012) Summit to address unemployment: The Nation, vol. 7, No. 2248, Pp: 35, Lagos. [18] Eshanokpe, J. (2012) “SMEs make N70.6billion from Fund. The Nation, vol. 7, No. 2283, Pp: 52, Lagos. [19] Fareed, Z. Abidan, Z. U, Shahzad. F. (2013) The Impact of Rewards on Employees. Job Performance and Job Satisfaction. Management and Administrative Sciences Review vol. 2, No. 5, pp: 431-443. [20] Federal Government of Nigeria (2006) MSMEs Act. [21] French W. L (1998) Human Resource Management New York, Houghton Mifflin. [22] Greenberg, J. (1999)Managing Behaviour in Organizations: Science in Service to Practice, Upper Saddle River, N. J Practice-Hall. [23] Halloran, J. (1978) Human Motivation; What Makes People Move? In J. Halloran (ed.) Applied Human Relations: An Organizational Approach New Jersey. Prentice-Hall, Inc. pp: 91-124. [24] Henderson, R. I (1994) Compensation Management: Rewarding Performance, 6th Edition, New York, Prentice – Hall. [25] Ibeenwo, G. I (2015) Entrepreneurship Development and Management in Nigeria, Aba, Living Word Mission Press. [26] Jenks, J. M, Zernik B. L. P (1993) Employee Benefits. Plain and Simple. New York Macmillan. [27] Jensen, M. and Murphy, K (1990a) Performance Pay and Top Management Incentives Journal of Political Economy, 98: 225-264. [28] Jensen, M. and Murphy, K (1990b) CEO Incentives – It’s Not How Much You Pay, But How. Harvard Business Review, 68(3): 138-153. [29] Klein, A. L (1996) Validity and Reliability for Competency Based Systems: Reducing Litigation Risks” Compensation and Benefits Review 28(4): 31-37. [30] Kalisk, B. S (2001) Encyclopedia of Business and Finance. Volume 1. USA, Macmillan, Reference. [31] Lin, Y. (2011) Executive Compensation and Firm Performance. Evidence from China’s Listed Private SMEs. Unpublished Master Thesis Faculty of Economics and Business, University of Amsterdam. [32] Longernecker, J. G, Moore, C. W, Petty, J. W, and Palich, L. E (2006) Small Business Management: An Entrepreneurial Emphasis, 13th Edition, USA, Thomson, South-Western. [33] Madura, J. (1998) Introduction to Business. Cincinnati, D. H: South-Western College Publishing. [34] Milkovich, G. T, Newman J. M (1996) Compensation: 5th Edition Chicago, Irwin. [35] Momoh, Y. I (2011) Effects of Government Policies on Small and Medium Enterprises for Wealth Creation in Nigeria. A Study of Idah Town, International Journal of Social and Policy Issues, 8(1): 247-251. [36] Nelson, C. (2016) $120b Trade Finance Gap Opens Opportunities for Banks. The Guardian, vol. 33, No. 13844, pp: 26. [37] Nickels, W. G. (1999) Understanding Business.5th Edition, Boston M. A: Irwin – McGraw-Hill. [38] Noe, R. A, Hollenbeck, J. R Gerhart, B, and Wright, P. M (2004). Fundamentals of Human Resource Management, USA, McGraw-Hill. [39] Olaopa, T. (2015) Governance Reform in Nigeria: Imperative of a New National Productivity Paradigm. The Guardian, Thursday, May 28, pp: 19. [40] Osehobo, V. (2012) 67 Million Youths Unemployed – Minister. Nigerian Pilot, vol. 2, No. 154, pp: 1-2. [41] Osuala, E. C. (2005) Introduction to Research Methodology, 3rd Edition. Onitsha Africana-First Publishers, Plc [42] Pauline, G. B (1997) Executive Compensation and Changes in Control: A Search for Fairness Compensation and Benefits Review, 29 (March/April) 30-40. [43] Pfeffer, J. (1994) Competitive Advantage Through People. Boston, M. A: Harvard Business School Press. [44] Reingold, J. Borrus A. (1997) Even Executive are Wincing at Executive Pay. Business Week, May 12:40-41. [45] Reingold, J. Melcher, R. A (1998) Executives Pay. Business Week, April 20:64-66. [46] Strivastav, P. and Singh, S. (2016). Narayana Murthy: The Table Turner in Troubled Times? Amity Business Journal, vol. 5, No. 2, pp: 31-37. [47] Tharaney, V. and Upadhyaya, D. (2016) New Paradigm in Higher Education in India: Edupreneurship: Amity Business Journal, No. 1, pp: 57-68. [48] The Holy Bible (1989) Authorized: King James Version. USA, World Publishing. [49] Torrington, D, Hall, L and Taylor, S. (2005) Human Resource Management, 6th edition, UK, Prentice Hall. [50] Utah State University (1997) Policy Manual: Compensation No. 384, pp: 1-4. [51] Werther and Davis (1996) Human Resources and Personnel Management, New York, McGraw-Hill, Inc.