Excerpt: Banks - Shareholders, staff want greater transparency into individual managers' earnings Published: Sunday | January 31, 2021 | 8:57 AM Jovan Johnson - Senior Staff Reporter In 2019, the average pay for the chief executive officer (CEO) of a commercial bank in Jamaica was $47 million, based on a Sunday Gleaner analysis that gives a rare glimpse into executive compensation amid a simmering call among shareholders for more detailed disclosures. There's no regulatory requirement for the disclosure of individual compensation of top executives, but there is a question of how long that may continue, given the growing 'say on pay' movement in European and North American jurisdictions. Compensation packages at the highest level tend to include a basic salary and variable pay, which can range from bonuses, time-vested stock or options which may be tied to performance, houses with staff for CEOs, and the usual benefits such as motor vehicles. STAFF NEGOTIATING IN THE DARK A senior executive at one of the banks, who didn't want his name mentioned, said he "understands" the need for transparency, especially at the top. "I know many of my senior colleagues don't know what most of us are getting, much less the junior employees. You negotiate almost blindly - no benchmark and in the US it's not. Economies are different. My concern is what the rogues may do," he said. Two employees of two of the financial institutions, whose salaries total less than $3 million per year, said they wished they had an idea of the compensation to inform how to negotiate the terms of their employment."I'm not just curious, but I would have wanted to know so I could have asked for a fair pay," said one of the workers, who is a teller. Source:https://jamaica-gleaner.com/articleews/20210131/banks-shareholders-staff- want-greater-transparency-individual-managers Questions 1. How does the executive compensation issue relate to equity theory? Consider the view of the executive and the view of the employee when providing your response. 2. Can you think of procedural justice implications related to the ways pay policies for top executives have been instituted? Do these pay-making decisions follow the procedural justice principles? 3. Are there any positive motivational consequences of tying compensation pay closely to firm performance? Use theories to guide your response