Decomposition of managerial compensation policy: from the perspective of information asymmetry in Korean firms

Key Points

• The study aims to analyze how information asymmetry influences managerial compensation policies in Korea.
• Conducted a literature review on compensation policies and information asymmetry.
• Analyzed case studies of Korean firms.
• Examined correlations between managerial pay and firm performance.
• Identified significant links between information asymmetry and compensation structures.
• Explored variations in compensation strategies among firms with differing levels of transparency.
• Recommended policy adjustments to enhance equity in managerial pay.