Interakcija nadzornih odbora i uprava u funkciji izgradnje sistema nagrađivanja menadžera u korporacijama: slučaj hotelskih preduzeća
Interaction of supervisory board and administration in function of building reward management system in corporations: case of hotel companies

Summary/Abstract: The issue of corporate governance and supervision of business tasks is set as a balancing process and risk management. The goals of the corporation are considered, in principle, in the context of long-term orientation. However, to achieve these goals, it is necessary, also, to define the short-term tasks, and to determine the desired results which will help achieve long-term goals. Management process includes the creation of organizational prerequisites in terms of effective implementation of decisions, to reach predefined results and objectives. In addition, it assumes continuous control of realizing anticipated or desired results and objectives. Relations between management and supervisory boards of corporations are thus predestined by the very form of corporate system in each country (the Anglo- American or continental, European system). The first system is characterized by weak position of shareholders and strong position of corporation management, where there is an absolute separation between ownership and management function. In the continental system, shareholders are somewhat better protected, and the management boards are not as dominant as it is the case with the Anglo-American system. This system is characterized by symbiosis between ownership and management functions. The most desirable for the market economy is the absolute separation, in which the owners are those who appoint the professional board members. Rewarding managers is one of the key levers of the corporate governance system. System of rewards should encompass the managers of all levels of the corporation. Managers’ salaries are very high. Explanations of such high earnings use three approaches.

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