Yongheng Yao and Steven H. Appelbaum
The purpose of this paper is to extend our understanding of CEO compensation by looking into the CEO pay‐setting process. Particularly, a process model is proposed to specify the…
Abstract
Purpose
The purpose of this paper is to extend our understanding of CEO compensation by looking into the CEO pay‐setting process. Particularly, a process model is proposed to specify the interaction between situational indicators, process variables, contextual factors and CEO pay.
Design/methodology/approach
A modest review the major theories that are driving the field of CEO compensation study reveals several interesting findings. These models or perspectives provide valuable but incomplete understanding of the multifaceted phenomenon. Especially, the realm of CEO pay‐setting process is still unexplored. A process model of CEO compensation is developed to fill in this gap.
Findings
CEO compensation is a negotiation between a CEO and a principal. Negotiated CEO pay is better predicted by CEO aspirations and principal reservations, rather than economic indicators. CEO power and the institutional environment have a moderating effect.
Practical implications
The study suggests that a better theory is critically in demand in order to improve effectiveness of corporate governance. This paper underscores that a real challenge for a principal in influencing CEO pay is to anticipate CEO aspirations and to monitor the gaps between CEO aspirations and principal reservations, rather than to control economic indicators. Unfortunately, until now there has been very limited information about principal reservation and CEO aspiration.
Originality/value
This inquiry seeks to make a difference by moving CEO compensation research into a fruitful direction. To our knowledge, this inquiry is the first attempt that provides systematic explanation as to how and why situational indicators do not directly influence the negotiated CEO pay. The newly proposed model is much realistic, much integrative and much dynamic, compared with existing conceptualizations. Eight propositions are presented to guide empirical research as well as future theory development.
Details
Keywords
Hongkang Liu, Qian Yu, Yongheng Li, Yichao Zhang, Kehui Peng, Zhiqiang Kong and Yatian Zhao
This study aims to get a better understanding of the impact of streamlined high-speed trains (HSTs) with geometric uncertainty on aerodynamic performance, as well as the…
Abstract
Purpose
This study aims to get a better understanding of the impact of streamlined high-speed trains (HSTs) with geometric uncertainty on aerodynamic performance, as well as the identification of the key parameters responsible for this impact. To reveal the critical parameters, this study creates a methodology for evaluating the uncertainty and sensitivity of drag coefficient induced by design parameters of HST streamlined shapes.
Design/methodology/approach
Bézier curves are used to parameterize the streamlined shape of HSTs, and there are eight design parameters required to fit the streamlined shape, followed by a series of steady Reynolds-averaged Navier–Stokes simulations. Combining the preparation work with the nonintrusive polynomial chaos method results in a workflow for uncertainty quantification and global sensitivity analysis. Based on this framework, this study quantifies the uncertainty of drag, pressure, surface friction coefficient and wake flow characteristics within the defined ranges of streamline shape parameters, as well as the contribution of each design parameter.
Findings
The results show that the change in drag reaches a maximum deviation of 15.37% from the baseline, and the impact on the tail car is more significant, with a deviation of up to 23.98%. The streamlined shape of the upper surface and the length of the pilot (The device is mounted on the front of a train’s locomotive and primarily serves to remove obstacles from the tracks, thereby preventing potential derailment.) are responsible for the dominant factors of the uncertainty in the drag for HSTs. Linear regression results show a significant quadratic polynomial relationship between the length of the pilot and the drag coefficient. The drag declines as the length of the pilot enlarges. By analyzing the case with the lowest drag, the positive pressure area in the front of pilot is greatly reduced, while the nose tip pressure of the tail is enhanced by altering the vortices in the wake. The counter-rotating vortex pair is significantly attenuated. Accordingly, exerts the impacts caused by geometric uncertainty can be found on the wake flow region, with pressure differences of up to 900 Pa. The parameters associated with the shape of the upper surface contribute significantly to the uncertainty in the core of the wake separation region.
Originality/value
The findings contribute to a better understanding of the impact of streamlined HSTs with geometric uncertainty on aerodynamic performance, as well as the identification of the key parameters responsible for this impact. Based on this study, future research could delve into the detailed design of critical areas in the streamlined shape of HSTs, as well as the direction of shape optimization to more precisely and efficiently reduce train aerodynamic drag under typical conditions.