The impact of financial performance on the remuneration of the board of directors Applied Study in Syrian Insurance Companies""

Abstract

The study examined the impact of financial performance on the remuneration of the board of directors from the perspective of insurance companies. Where it aimed to test the impact of financial performance as an independent variable represented by (return on assets and operating cash flow) on the remuneration of the Board of Directors as a dependent variable. The study relied on the descriptive analytical approach by referring to previous studies, research, periodicals and articles that dealt with both the financial performance and the remuneration of the Board of Directors, the study was applied on a sample of Syrian insurance companies during the period from 2016-2020, In order to determine the importance of the relationship between the financial performance and the remuneration of the board of directors by addressing the remuneration of the board of directors in all its forms By addressing all kinds of board remunerations and emphasizing their importance as a governance mechanism that contributes to motivating managers to make efforts to improve the financial performance of the company, in addition to the consistency of interests between management and shareholders. The study found a correlation between return on assets, and cash rewards, Thus, the financial performance affects the monetary rewards of the members of the board of directors in the Syrian insurance companies, the study sample, This is consistent with the imposition of the optimal contracting approach, which is based on the idea of linking rewards to performance, Which contributes to motivating the board of directors to increase the supervisory effort on the executive management, which Leading in the end to an increase In the wealth of owners and improving financial performance, while the study showed that there is no a correlation between operating cash flow and cash rewards, In addition, the Syrian insurance companies depend in the payment of cash bonuses to the board of directors on the profitability of assets in the previous year.