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Publications of Kudin Larisa
Finance and Management, 2021-1
Kudin L. - Regulations of corporate internal control based on performance assessment of the chief executive officer pp. 21-33

DOI:
10.25136/2409-7802.2021.1.35164

Abstract: The subject of this article is the corporate internal control processes. Internal control plays an important role in activity of the company and is based upon the principles of respecting the interests of all stakeholders, scope of the rights and obligations of shareholders, top managers and the board of directors. Since the chief executive officer is the key figure responsible for the implementation of development strategy, the goal of this research consists in working out the performance indicators of the CEO. The author explores the following theoretical approaches: system of balanced indicators, prism of performance, stakeholder theory, and theory of dynamic capabilities. Special attention is given to dependence of performance of the CEO to his compensation. For implementation of the effective mechanism of internal control, it is proposed to develop the performance indicators of the CEO, taking into account the interests of stakeholders: board of directors, investors, creditors, employees, clients, vendors, and company. In outlining the goals and tasks of activity of the chief executive officer, the expectations of the stakeholders should be considered. The author develops the matrix of key performance indicators for the CEO in the context of stakeholders. The scientific novelty consists in the proposed original methodological approach towards performance assessment of the chief executive officer, the peculiarity of which is lies in comprehensive application of the system of balanced indicators and comparative market efficiency of a corporation.
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