Call for proposals

Norges Bank Investment Management is currently inviting submission of research proposals within the following topic:

Executive compensation and the long-term implications for global investment portfolios.

 

Remuneration practices for executives of listed companies are constantly developing, with substantial variation across markets, sectors, ownership structures, and individual companies. Practices vary not only in terms of prospective and realised level of pay but also with respect to structure, time horizon, complexity, process, and reporting.

Executive compensation is intended to affect behaviour and to serve as a corporate governance mechanism, but the effects of compensation on executives and ultimately corporate performance are not fully established, neither in the increment nor the aggregate. Regulatory action, best-practice development, professional advisory, board deliberations, and investor policy and engagement all exist for the purpose of furthering good practices, but no scientific consensus prevails on the optimal response to various corporate circumstances. Executives’ contracts are also reflections of conditions in the labour market for executives as well as of the characteristics of decision-making processes in complex organisations. Executive compensation represents opportunities, risks and cost to the company and may have effects for the well-functioning of markets and the long-term return on investment portfolios.

The project should contribute to our understanding of executive compensation and its interplay with other incentives.  We would like to learn more about how compensation may affect companies’ governance, corporate decision-making, and long-term performance. Secondly, we are interested in research that provides new insight into how institutional investors can constructively affect the performance of companies and portfolios through voting on executive compensation and engagement with companies as well as market-standard setters.

Norges Bank Investment Management may provide support for research initiatives for a period of up to three years. The research funding may be used for conferences, roundtables, workshops, papers, or other research initiatives aiming at original research and new scientific insight.

Norges Bank Investment Management welcomes proposals from academic researchers, institutions and professional organisations with a proven record of carrying out high quality research. Research proposals should include a description of the research questions covered by the proposal, expected output and results, a time line for the execution of the project, a biography of the principal investigators and the research budget. Submitted research proposals will be evaluated by our Scientific Advisory Board.

The deadline for submission of proposals is 1 December 2022.

Please contact us for more information about the call and application procedure: nfi@nbim.no.

Last saved: 01/11/2022