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The Impact of the Covid-19 Pandemic on the Compensation of Top Managers of the CSR Organizations in the Field of Tourism and Hospitality in EU

Author

Listed:
  • Ilić Miloš

    (PhD student, University of Niš, Faculty of Economics, Republic of Serbia)

  • Lepojević Vinko

    (University of Niš, Faculty of Economics, Republic of Serbia)

  • Ivanović-Đukić Maja

    (University of Niš, Faculty of Economics, Republic of Serbia)

  • Ljubenović Marko

    (Science and Tehnology Park, Niš, Republic of Serbia)

Abstract

This paper investigates the impact of the Covid-19 pandemic on the compensation of top managers and business performances of large socially responsible companies CSRin EU in tourism and hospitality industry. By applying the methods of correlation and regression analysis on a sample of 241 large organizations in the field of tourism and hospitality, we examined whether the Covid-19 pandemic caused a decrease in the total compensation of top managers and some of their parts (basic salary and variable part of compensation) and a change in their structure in a socially responsible company in the field of tourism and hospitality in the EU and how these changes in return affected the performance of the mentioned organizations measured by return on investment ROE. The results showed that there was a significant decrease in the total compensation of top managers in the observed companies during 2020 and 2021compared to 2019, as well as that there was an increase in the share of the basic salary (to the detriment of the variable part) in the total earning of top managers in the same period. The results also showed that changes in the compensation of top managers due to the pandemic had a significant impact on the performance of large socially responsible companies in the tourism and hospitality industry in EU that they lead.

Suggested Citation

  • Ilić Miloš & Lepojević Vinko & Ivanović-Đukić Maja & Ljubenović Marko, 2023. "The Impact of the Covid-19 Pandemic on the Compensation of Top Managers of the CSR Organizations in the Field of Tourism and Hospitality in EU," Economic Themes, Sciendo, vol. 61(3), pages 325-341, September.
    • Handle: RePEc:vrs:ecothe:v:61:y:2023:i:3:p:325-341:n:8
    DOI: 10.2478/ethemes-2023-0017
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    References listed on IDEAS

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    1. Elisa Baraibar‐Diez & María D. Odriozola & José Luis Fernández Sánchez, 2019. "Sustainable compensation policies and its effect on environmental, social, and governance scores," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1457-1472, November.
    2. Lee, Sangki & Lee, Dongyoup & Hong, Chunghun & Park, Myung-Ho, 2022. "Performance of socially responsible firms during the COVID-19 crisis and trading behavior by investor type: Evidence from the Korean stock market," Finance Research Letters, Elsevier, vol. 45(C).
    3. Luo, Yongli, 2015. "CEO power, ownership structure and pay performance in Chinese banking," Journal of Economics and Business, Elsevier, vol. 82(C), pages 3-16.
    4. Tiago Gonçalves & Cristina Gaio & André Ferro, 2021. "Corporate Social Responsibility and Earnings Management: Moderating Impact of Economic Cycles and Financial Performance," Sustainability, MDPI, vol. 13(17), pages 1-14, September.
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    More about this item

    Keywords

    Corporate Social Responsibility; Covid-19 crisis; tourism and hospitality industry; compensations package; salary; top managers;
    All these keywords.

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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