JOURNAL OF BUSINESS ADMINISTRATION - IBA, DU

22
Institute of Business Administration University of Dhaka Vol. 41, No. 1, June, 2020, pp. 1-22 ISSN : 1680-9823 (Print) ISSN : 2708-4779 (Online) JOURNAL OF BUSINESS ADMINISTRATION Dhiman Chowdhury Department of Accounting Information Systems Faculty of Business Studies, University of Dhaka Bangladesh Citation (APA): Chowdhury, D. (2020). Employee Salaries and Benefits and their Disclosures in NGOs : Lessons from the PLCs, Journal of Business Administration, 41(1), 1-22. Corresponding Author: Dhiman Chowdhury Email: [email protected] Employee Salaries and Benefits and their Disclosures in NGOs : Lessons from the PLCs

Transcript of JOURNAL OF BUSINESS ADMINISTRATION - IBA, DU

Institute of Business AdministrationUniversity of Dhaka

Vol. 41, No. 1, June, 2020, pp. 1-22ISSN : 1680-9823 (Print)

ISSN : 2708-4779 (Online)

JOURNAL OFBUSINESS ADMINISTRATION

Dhiman ChowdhuryDepartment of Accounting Information SystemsFaculty of Business Studies, University of DhakaBangladesh

Citation (APA): Chowdhury, D. (2020). Employee Salaries and Benefits and

their Disclosures in NGOs : Lessons from the PLCs, Journal of Business Administration, 41(1), 1-22.

Corresponding Author: Dhiman Chowdhury

Email: [email protected]

Employee Salaries and Benefits and their Disclosures in NGOs :Lessons from the PLCs

EMPLOYEE SALARIES AND BENEFITS AND THEIR DISCLOSURES IN NGOS : LESSONS FROM THE PLCS

Abstract

This article has collected annual reports and accounts of 18 Bangladeshi and 24 foreign NGOs for 2017-18 and found that NGOs in developing countries like %DQJODGHVK�DQG�,QGLD�JLYH�PRUH�VDODULHV�DQG�EHQH¿WV�WR�HPSOR\HHV�FRPSDUHG�WR�WKH�FRUSRUDWH�VHFWRU��7KH\�DOVR�VSHQG�PRUH�RQ�HPSOR\HH�WUDYHOOLQJ��7KLV�PDNHV�VHQVH�EHFDXVH�1*2V�ZLWK�IRUHLJQ�PRQH\��DQG�DOVR�IRUHLJQ�RUJDQL]DWLRQV��SD\�PRUH�WR�HPSOR\HHV�WKDQ�ORFDO�RUJDQL]DWLRQV��6HFRQG��8.�DQG�86$�LQFRUSRUDWHG�1*2� HPSOR\HH� VDODULHV� DQG� EHQH¿WV� DUH� ORZHU� WKDQ� WKRVH� RI� WKH� FRUSRUDWH�VHFWRU��7KLUG��1*2V�LQ�GHYHORSLQJ�FRXQWULHV�OLNH�%DQJODGHVK�DQG�,QGLD�GR�QRW�GLVFORVH� DQ\� LQIRUPDWLRQ� RQ� H[HFXWLYH� VDODULHV� DQG� EHQH¿WV� LQ� WKHLU� DQQXDO�reports or websites whereas these information are disclosed in detail in the GHYHORSHG�FRXQWULHV��)RXUWK��H[HFXWLYH�DQG�HPSOR\HH�VDODU\�UDWLR�LQ�WKH�1*2V�RI�GHYHORSHG�FRXQWULHV�LV�ORZHU�FRPSDUHG�WR�WKDW�RI�WKH�FRUSRUDWH�VHFWRU��)LIWK��WKHUH�DUH�VSHFL¿F�UHJXODWLRQV�RQ�WKH�SUHSDUDWLRQ�RI�LQWHUQDWLRQDOO\�DFFHSWDEOH�¿QDQFLDO�VWDWHPHQWV�DQG�WKHLU�GLVFORVXUH�LQ�WKH�DQQXDO�UHSRUWV�IRU�1*2V�LQ�WKH�GHYHORSHG�FRXQWULHV�ZKLFK�DUH�DEVHQW�LQ�%DQJODGHVK�DQG�,QGLD��6L[WK��GHWDLOHG�GLVFORVXUH� RI� UHPXQHUDWLRQ� RI� H[HFXWLYHV� DQG� WKH� &KLHI� ([HFXWLYH� 2৽FHU� LV�PDQGDWRU\�LQ�WKH�GHYHORSHG�FRXQWULHV�ZKLFK�LV�DEVHQW�LQ�%DQJODGHVK�DQG�,QGLD��The article concludes that research and reform is possible in knowledge based FRXQWULHV�ZKHUH� GHWDLOHG� GLVFORVXUH� RI� H[HFXWLYH� UHPXQHUDWLRQ� LV�PDQGDWRU\��7KH\�FDQ�QRZ�UDLVH� WKHLU�YRLFH�IRU�UHGXFLQJ�LQHTXDOLW\� LQ�VDODU\�DQG�EHQH¿WV�EHFDXVH�WKHLU�&(2�HPSOR\HH�SD\�UDWLR�LV�WRR�KLJK��7KLV�RSSRUWXQLW\�VWLOO�UHPDLQV�lost in the developing countries.

Keywords :�(PSOR\HH�6DODULHV�DQG�%HQH¿WV��&(2�3D\��'LVFORVXUH��1*2V��3/&V�

1. INTRODUCTION

Government ministries, departments and agencies may remain too busy in carrying out activities in line with the previous agendas and budget. Second, in the developing countries, many of the appointments and promotions are political rather than merit based. Third, local governments are weak and unable to identify time and place-VSHFL¿F� SUREOHPV��)RXUWK�� JRYHUQPHQWV� FRXOG� QRW� FROOHFW� WD[HV� IURP� WKH� ULFK� DQG�wealthy and as a result resources piled up in their hands and most of these being XQXVHG�ZRXOG� QRZ�JR� IRU� SXEOLF� EHQH¿WV�� ,Q� VXFK� LPSHUIDFWLRQV� RI� JRYHUQPHQWV��some charismatic leaders come up with new ideas called NGOs (nongovernment RUJDQL]DWLRQV��� %5$&� LQ�%DQJODGHVK�� 6KDNWL� )RXQGDWLRQ� LQ� ,QGLD��:DWHU$LG�8.��2UELV� 8.�� 6DYH� WKH� &KLOGUHQ� ,QWHUQDWLRQDO�� $PQHVW\� ,QWHUQDWLRQDO�� 3DWK¿QGHU�,QWHUQDWLRQDO��2[IDP�,QWHUQDWLRQDO�DUH�VRPH�RI�WKHVH�LGHDV��1*2V�DUH�VHOI�JRYHUQLQJ��

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)2

SULYDWH��QRW�IRU�SUR¿W��RUJDQL]DWLRQV��WKDW��DUH��JHDUHG��WRZDUGV��LPSURYLQJ��WKH��TXDOLW\��of life of disadvantaged people. They collect funds from international donors, and act as coordinators between the smaller voluntary bodies and the foreign donor agencies. NGOs mainly work in the developing countries where governments failed in many dimensions to provide their citizens the basic needs of life such as, democracy, food, house, health, water, sanitation, and education. A catastrophic cyclone in 1970 and a famine in 1974 had shown the state to be incapable of providing public services, VR�LW�DOORZHG�RWKHUV�WR�GR�VR��7KHUH�DUH�VHUYLFH�1*2V�OLNH�2[IDP�DQG�5HG�&URVV�ZKR�ZRUN�IRU�KXPDQLWDULDQ�DLG��DGYRFDF\�1*2V�DFWLQJ�DV�DGYRFDWHV�IRU�EHQH¿FLDULHV�OLNH�women and children (rights), and special purpose groups or environmental NGOs. There are NGOs who do micro credit and social business vis-à-vis humanitarian DLG�� DGYRFDF\�� IRU� H[DPSOH�%DQJODGHVK�5XUDO�$GYDQFHPHQW� &RPPLWWHH� �%5$&���1*2V� VKDUH�PRVW� �LI� QRW� DOO�� WKH� IROORZLQJ� IHDWXUHV�� QRQ�VWDWH� DFWRUV�� QRQSUR¿WV��independent from government, act in the public interest, rely on volunteers (also KDYH�SURIHVVLRQDOV���)RUHLJQ�1*2V�UHOHDVHG�QHDUO\����ELOOLRQ�LQ�%DQJODGHVK�LQ�WKH�UHFHQW�\HDUV��7KH�¿JXUH�LV������ELOOLRQ�ZRUOGZLGH��7KHUH�DUH�H[WUHPH�OHYHOLQJ�DJDLQVW�1*2V��2QH�H[WUHPH�LV�1*2V�DUH�FRQVFLHQFH�RI�WKH�ZRUOG��:LOOHWWV���������$QRWKHU�RQH�LV��DLG�LV�KHDYLO\�ZHLJKWHG�WRZDUGV�KHOSLQJ�IRUHLJQ�¿UPV�ZLQ�FRQWUDFWV�LQ�SRRU�FRXQWULHV��.HQQDUG��3URYRVW���������7KH�REMHFWLYH�RI�WKH�DUWLFOH�LV�QRW�WR�HYDOXDWH�the above but to evaluate whether NGOs pay their employees and CEOs more than other industries. The article is based on the belief that there are scopes for NGOs to GR�EHWWHU�E\�VSHQGLQJ�PRUH�IRU�SXEOLF�EHQH¿W�UDWKHU�WKDQ�IRU�VSHQGLQJ�IRU�VHOI�LQWHUHVW�of the management.

Therefore, this article would particularly look at whether NGO employees and H[HFXWLYHV�FRQVXPH�H[FHVV�VDODULHV�DQG�SHUTXLVLWHV�UHFHLYHG�IURP�WKH�GRQRUV�WR�EH�VSHQW�IRU�SXEOLF�EHQH¿W��3RVVLEOH�PHDVXUHV�IRU�GHWHUPLQLQJ�WKLV�REMHFWLYH�DUH��L��WKH�DPRXQW� RI� HPSOR\HH� VDODU\� DQG� EHQH¿WV�� �LL�� H[HFXWLYH� VDODULHV� DQG� EHQH¿WV�� �LLL��DYHUDJH�VDODU\�DQG�EHQH¿WV�RI�HPSOR\HHV���LY��VDODULHV�DQG�EHQH¿WV�DV�D�SHUFHQWDJH�RI� WRWDO� UHYHQXH�� �Y�� DQG� H[HFXWLYH�HPSOR\HH� VDODULHV� DQG� EHQH¿WV� UDWLR��$QRWKHU�SRVVLEOH�ZD\�RI� IXO¿OOLQJ�PDQDJHPHQW� VHOI�LQWHUHVW� LV� RYHUVSHQGLQJ� RQ� WUDYHOOLQJ��This paper will therefore (vi) evaluate the intensity of money spent on travelling H[SHQVHV�

2. LITERATURE

6RPHWLPHV�JRYHUQPHQWV�DUH�QRW�DEOH��JRYHUQPHQW�IDLOXUHV��WR�SURYLGH�WKH�UHTXLUHG�TXDQWLWLHV�RI�VHUYLFHV�WR�VRPH�VHFWLRQV�RI�WKH�SRSXODWLRQ�ZKR�QHHG�PRUH�SURYLVLRQV�WKDQ�WKH�DYHUDJH�SURYLVLRQV��,Q�WKRVH�FDVHV��1*2V�EHFRPH�WKH�SODXVLEOH�RSWLRQ�WR�IXO¿O�WKLV�GHPDQG�JDS�OHIW�E\�WKH�JRYHUQPHQW��1*2V�UHO\�RQ�GRQDWLRQV�WR�UXQ�WKHLU�operations. Since they cannot generate their own income, they rely on funders to SD\� WKHLU� FRVWV�� 7KHUH� LV� DQ� H[SHFWDWLRQ� JHQHUDOO\� DPRQJ� HYHU\ERG\� �HVSHFLDOO\�donors) that NGO people should pay themselves less so that they can spend more of that donation money on helping the people in communities. However some of this LV�FKDQJLQJ��3HRSOH�DUH�EHJLQQLQJ�WR�UHDOL]H� WKDW�1*2V�WU\�DQG�VROYH�VRPH�RI� WKH�

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ELJJHVW�FKDOOHQJHV�LQ�WKH�ZRUOG�DQG�WKDW�WR�GR�WKLV�MRE�ZHOO�RQH�QHHGV�VNLOOHG�SHRSOH�ZKR�FDQ�PDNH�FKDQJH�KDSSHQ�RQ�WKH�JURXQG��$QG�MXVW�OLNH�DQ\�FRPSDQ\�QHHGV�JRRG�SHRSOH�WR�PDQDJH�DQG�JURZ�LW��VR�GR�1*2V��:KLFK�PHDQV�WKDW�LI�\RX�ZDQW�WKH�1*2�to have greater impact, you must allow them to hire good people at fair salaries so that they can consider the social sector (and NGOs) as a viable career option.

NGOs should disclose information to strengthen their image as agents that serve VRFLHW\��7KH\�QHHG�WUXVW�RI�WKH�GRQRUV�DQG�VXVWDLQ�WKH�ÀRZ�RI�IXQGV��7KH\�VHHN�WR�reduce information asymmetry between the agents and the fund providers. But there DUH�QR�VSHFL¿F�DFFRXQWLQJ�JXLGHOLQHV�RQ�1*2V�LQ�WKH�GHYHORSLQJ�FRXQWULHV��7KHUH�DUH�JHQHUDO�UXOHV�KRZHYHU��6R��1*2V�DUH�H[SHFWHG�QRW�WR�JR�IRU�VSHFL¿F�DFFRXQWLQJ�DQG�¿QDQFLDO�GLVFORVXUHV��&DEHGR�HW�DO���������FDOFXODWHG�LQGH[�RI�GLVFORVXUH�LQ����6SDQLVK�1*2V�DV�UHJDUGV�WHFKQLFDO��¿QDQFLDO��DQG�VFRSH��)LQDQFLDO�LQIRUPDWLRQ�KHUH�LQFOXGHV�GL൵HUHQW�VRXUFHV�RI�SURMHFWV��¿QDQFLDO�UHVRXUFHV�FRQVXPHG��DQG�WKH�QXPEHU�RI�SURMHFWV��7KH�LQGH[�ZDV�EDVHG�RQ�WKH�LQIRUPDWLRQ�SXEOLVKHG�LQ�WKHLU�VRFLDO�UHSRUWV��7KHLU�UHVXOWV�VKRZ�WKDW�PRVW�RI�WKH�RUJDQL]DWLRQV�KDYH�D�WUDQVSDUHQF\�LQGH[�RI�WKHLU�SURMHFWV�ZLWK�D�YDOXH�HTXDO�WR�RU�OHVV�WKDQ������WKDW�LV��WKH�RUJDQL]DWLRQV�GR�QRW�GLVFORVH�a large number of information about a large number of items in their social reports.

6WDQGDUG� DJHQF\� WKHRU\� �RU� DJHQF\� UHODWLRQ�� LQ� 3/&V� DSSOLHV� WR� 1*2V� DQG�JRYHUQPHQW� RUJDQL]DWLRQV�� 3XEOLF� OLPLWHG� FRPSDQLHV� �3/&V�� DUH� RZQHG� E\�shareholders (principals) but managed and controlled by managers (agents) on behalf RI�WKH�SULQFLSDOV��-HQVHQ��������&KRZGKXU\���������1*2V�DQG�WKHLU�PDQDJHUV�XVH�GRQRUV¶�PRQH\�WR�EH�XVHG�IRU�SXEOLF�EHQH¿W�RU�IRU�FHUWDLQ�GLVDGYDQWDJHG�VHFWLRQV�RI�the society. Donors (fund providers) do not take part in management rather NGOs and their managers (called agents) run and control these organizations. Similarly JRYHUQPHQW�DJHQFLHV��PDQDJHUV��PDQDJH�SXEOLF�PRQH\��WD[SD\HUV¶�PRQH\��IRU�WKH�EHQH¿W�RI�WKH�SXEOLF��VWDNHKROGHUV���7KH�SUREOHP�RI�WKLV�VWDQGDUG�DJHQF\�WKHRU\�LV�WKDW�agents or managers may misuse the public money. Managers may overcompensate WKHPVHOYHV�LQ�WKH�IRUP�RI�VDODULHV�DQG�EHQH¿WV��WUDYHOOLQJ�H[SHQVHV��ERQXV�DQG�RWKHU�DGPLQLVWUDWLYH�H[SHQVHV��7KHUH�DUH�ZRUOGZLGH�HYLGHQFHV� LQ�VXSSRUW�RI� WKLV�DJHQF\�SUREOHP�LQ�3/&V�

7KHUH�LV�DQ�DGGLWLRQDO�XQLTXH�VLWXDWLRQ�LQ�1*2V��7KH\�FDQQRW�GLVWULEXWH�VXUSOXV�WR�PHPEHUV��IXQG�SURYLGHUV�DQG�PDQDJHPHQW���3XEOLF�OLPLWHG�FRPSDQLHV��RQ�WKH�RWKHU�KDQG��KDYH�WR�JHQHUDWH�SUR¿W�DQG�GLVWULEXWH�GLYLGHQG�WR�VKDUHKROGHUV��0DQDJHPHQW�must work hard to increase the value of their wealth. Even government sector in many countries must work at least at break-even-point. And government agencies have to generate surplus like corporate sector. Since charities usually do not have to create surplus and return to fund providers their management has additional scopes IRU�VHOI�LQWHUHVW�DQG�WDNH�H[FHVV�SHUTXLVLWHV�

7KHUH� LV� DQ� RSSRVLWH� YLHZ� DOVR��&KDULW\� HPSOR\HHV� WDNH� OHVV� VDODULHV� DQG�EHQH¿WV�because of sense of altruism. Compassion for and relief of the sick, the poor, the elderly and the handicapped have always been at the root of the charitable ethic. ,QGLYLGXDOV� WKHUHIRUH�VXSSRUW�RUJDQL]DWLRQV� OLNH�2[IDP�DQG�&$5(�IURP�WKH�VHQVH�

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)4

RI�DOWUXLVP���0LVHULHV�DQG�VX൵HULQJV�RI�WKH�SRRU�FDQ�UHVXOW�VRPH�VHQVH�RI�JXLOW�DQG�shame among the members of NGO management and management may feel guilty in sharing fund meant for the poor.

*XJDUW\�DQG�3UDNDVK��������JDYH�DQ�H[FHOOHQW�GHVFULSWLRQ�RI�WKH�DJHQF\�SUREOHPV��DFFRXQWDELOLW\� SUREOHPV�� LQ� QRQSUR¿W� RUJDQL]DWLRQV� FRPSDUHG� WR� SUR¿W�PDNLQJ�¿UPV�DQG�SXEOLF�VHFWRU�RUJDQL]DWLRQV��1*2V�QHHG�WR� LQFUHDVH�WKHLU�FUHGLELOLW\�DQG�transparency. Sources of funds, distribution of fund, governance structure, books RI� DFFRXQWV�� DGPLQLVWUDWLYH� H[SHQVHV�� DQG� WD[DWLRQ� DUH� WKH� DUHDV� ZKHUH� WKHUH� DUH�VFRSHV� IRU� WUDQVSDUHQF\� DQG� FUHGLELOLW\� �*RXUHYLWFK� HW� DO��� �������:KHQ� WKHUH� DUH�information asymmetries between the sellers (donors or principals) and the buyers �1*2V��DQG�KHWHURJHQHLW\��VHYHUDO�VRXUFHV�RI�JUDQWV��LQ�TXDOLW\�RI�WKH�VHOOHUV�WKHQ�DULVH�PRUH�DJHQF\�SUREOHPV��2QH�PDMRU�DJHQF\�SUREOHP�FRXOG�EH�RYHUFRQVXPSWLRQ�RI� PDQDJHULDO� SHUTXLVLWHV� DQG� H[FHVV� VSHQGLQJ� RQ� JRYHUQDQFH� DQG� UHSRUWLQJ�UHTXLUHPHQWV��,QVWLWXWLRQDO�GRQRUV�FRPSDUHG�WR�LQGLYLGXDO�GRQRUV�DUH�PRUH�RUJDQL]HG�WR�PRQLWRU�WKH�1*2V���5HGXFLQJ�WKH�DJHQF\�SUREOHPV�QHHG�H[WHQVLYH�UHSRUWLQJ�DQG�disclosure. Donors or principals may go for writing detailed contracts but all matters cannot be covered. Or they go for monitoring which is costly. Again only institutional SULQFLSDOV� FDQ� D൵RUG� WR� GR� WKLV�� 3ULQFLSDOV� WKHUHIRUH� GR� DGGLWLRQDO� PHFKDQLVPV�LQFOXGLQJ�VFUHHQLQJ�DQG�FDUHIXO�VHOHFWLRQ�RI�DJHQWV�SULRU�WR�JUDQWLQJ�IXQGV��3ULQFLSDOV�may choose to give only small, short term grants as opposed to larger, long term ones. 7KH\�FDQ�REVHUYH�RQO\�WKH�RXWFRPH�QRW�WKH�IXOO�H൵RUW�RI�WKH�DJHQWV��7KH�DQWLFLSDWLRQ�of ‘market failure’ in the philanthropy market gives the good NGOs the incentive WR� UHYHDO�PRUH� YROXQWDULO\�� %\� GRLQJ� WKLV�1*2V� FDQ� H[HUFLVH� JUHDWHU� RSHUDWLRQDO�IUHHGRP�DQG�GHFUHDVHG�JRYHUQDQFH�FRVWV��,Q�WKH�FRUSRUDWH�VHFWRU��WKH�VLPLODU�DJHQF\�problem and asymmetry of information between the management and shareholders LV�PLWLJDWHG� E\� FRUSRUDWH� JRYHUQDQFH�PHFKDQLVPV� OLNH� LQGHSHQGHQW� QRQH[HFXWLYH�directors in the board, active participation of the institutional shareholders, and tying PDQDJHULDO�UHPXQHUDWLRQ�WR�SHUIRUPDQFH�DQG�SUR¿W�VKDULQJ��DQG�GHWDLOHG�UHSRUWLQJ�DQG� GLVFORVXUH� UHTXLUHPHQWV�� %XW� 1*2V� DUH� QRQ�SUR¿WV� DQG� VR� HPSOR\HH� SUR¿W�sharing does not arise. NGOs operate mostly in the developing countries where QRQH[HFXWLYH� PHPEHUV� LQ� WKH� ERDUG� DUH� SROLWLFDOO\� FKRVHQ� DQG� WKHUHIRUH� FDQQRW�GHOLYHU��%DQNLQJ�VHFWRU�LV�DQ�H[DPSOH�LQ�%DQJODGHVK�ZKHUH�WKHUH�DUH�QRQH[HFXWLYH�members in the board but loan default is a national crisis. Again stock market is QRQFRPSHWLWLYH� DQG� LQVWLWXWLRQDO� VKDUHKROGHUV� GR� QRW� H[HUFLVH� µYRLFH¶� EXW� µH[LW¶��But NGOs do not have shareholders and they cannot distribute the residuals even LI�WKH\�KDYH�LW��)XUWKHU��1*2V�SXUVXH�PXOWLSOH�JRDOV�ZKLFK�DFFHQWXDWHV�WKH�DJHQF\�problem because demands of the principals cannot be ranked in clear and consistent ZD\��-RKQVRQ��3UDNDVK���������([WHUQDO� LQVWLWXWLRQDO�HQYLURQPHQW�GRHV�QRW�H[LVW�for NGOs unlike stock market for the publicly listed companies. And standardized SHUIRUPDQFH�PHDVXUHV�RI�WKH�VWRFN�PDUNHW�DUH�QRW�DYDLODEOH�IRU�WKH�1*2V��6SDU��'DLO���������1*2V�GR�YDULHWLHV�RI�MREV�DQG�WKHUHIRUH�YDULRXV�VWDNHKROGHUV�OLNH�WKH�ERDUGV��GRQRUV��KRVW�JRYHUQPHQWV��DQG�EHQH¿FLDULHV�KDYH�WKHLU�RZQ�SUHIHUHQFHV�DV�EHQFKPDUN�VWDQGDUGV�RI�SHUIRUPDQFH��,Q�WKH�SXEOLF�VHFWRU��JRYHUQPHQW�GHSDUWPHQWV�

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and agencies) there are disciplining devices by the parliamentary standing committees, audit by supreme audit institution, and partial privatization. But parliament and parliamentary standing committees are nonfunctioning, the supreme audit institution LV� KHOSOHVV��$QG� SULYDWL]DWLRQ� SURFHVV� LV� YHU\� VORZ�� 8QOLNH� SXEOLF� VHFWRU�� YDULRXV�principals do not know each other and cannot institute a set of institutional checks and balances nor can they monitor the activity of NGOs as vested interest groups. 1RQSUR¿W� EHQH¿FLDULHV� DOVR� FDQQRW� YRLFH� DQG� YRWH� DV� WKH� VKDUHKROGHUV� FDQ� LQ� WKH�3/&V�RU�DV�WKH�SDUOLDPHQWDU\�VWDQGLQJ�FRPPLWWHHV�DQG�WKH�VXSUHPH�DXGLW�LQVWLWXWLRQ�can in the public sector. NGOs have additional shortage of accountability for these GLVVLPLODULWLHV�ZLWK�3/&V�DQG�WKH�SXEOLF�VHFWRU��,Q�WKH�FRQWH[W�RI�PXOWLSOH�SULQFLSOHV�DQG�PXOWLSOH�JRDOV��GHVLJQLQJ�FRQWUDFWV�ZLOO�EH�FRVWO\��8QOLNH�3/&V�DQG�SXEOLF�VHFWRU�organizations, principals in NGOs (donors) are far away from the agents (NGOs and WKHLU�EHQH¿FLDULHV���1*2�EHQH¿FLDULHV�OLYH�LQ�WKH�GHYHORSLQJ�ZRUOG�EXW�1*2V�DUH�based in industrialized countries. The best option remains is the careful screening and VHOHFWLRQ�RI�FUHGLEOH�QRQSUR¿WV�DQG�GHWDLOHG�UHSRUWLQJ�DQG�GLVFORVXUH�UHTXLUHPHQWV��,Q�SDUWLFXODU�� WKHUH�DUH�GHWDLOHG� UHSRUWLQJ�DQG�GLVFORVXUH� IRU� IXQG�UDLVLQJ��SURJUDP�FRVWV�DQG�GLVFORVXUH�RI�VDODU\�DQG�EHQH¿WV�VHSDUDWHO\�IRU�WKH�H[HFXWLYHV�DQG�VWD൵��7R�the best of my knowledge there is no academic work on comparison of employee and CEO salary in NGOs but there are survey type studies on selected NGOs either on employee salaries or CEO salaries but not on the comparison. This article is an attempt to this end.

2.1 Further Literature

2.1.1 Financial Reporting in NGOs

)RUHLJQ� &RQWULEXWLRQV� �5HJXODWLRQ�� 2UGLQDQFH� ������ 6HFWLRQ� �� KDV� DFFRXQWLQJ�regulations: annual report, annual statements of accounts, bank accounts, and audit EXW�GRHV�QRW� UHTXLUH�GHWDLOHG�GLVFORVXUH�RI� HPSOR\HH�DQG�H[HFXWLYH� UHPXQHUDWLRQ��1*2$%�KRZHYHU�UHTXLUHV�GHWDLOV�RI�HPSOR\HHV��ZLWK�PRQWKO\�VDODU\�RI�7.�������DQG� DERYH� RU� RQH� WLPH�7.�� ������� WKHLU� QDPHV�� GHVLJQDWLRQV�� TXDOL¿FDWLRQV�� DJH��total salaries and allowances, and length of service) to be attached while submitting DFFRXQWV�WR�WKHP��7KH\�DOVR�UHTXLUH�1*2V�PXVW�QRW�VSHQG�PRUH�WKDQ�����RI�WRWDO�H[SHQGLWXUHV�RQ�DGPLQLVWUDWLRQ��1HLWKHU� WKH�$FW�QRU�1*2$%�VSHFL¿FDOO\�PHQWLRQ�(although it is understood) about internationally recognized balance sheet, statement RI�DFWLYLWLHV��FDVK�ÀRZ�VWDWHPHQW��DQG�QRWHV�WR�¿QDQFLDO�VWDWHPHQWV��$V�D�UHVXOW��PDQ\�1*2V�GR�QRW�GLVFORVH�VWDQGDUG�¿QDQFLDO� VWDWHPHQWV��$QG�VLQFH�1*2$%�GRHV�QRW�GLVFORVH�HPSOR\HH�UHODWHG�LQIRUPDWLRQ�RI�1*2V�SDUWLFXODUO\�H[HFXWLYH�VDODULHV�DQG�EHQH¿WV�LQ�LWV�ZHEVLWH��FRPSDULVRQ�RI�HPSOR\HH�DQG�H[HFXWLYH�UHPXQHUDWLRQ�LV�QRW�possible. Only one NGO (BNNRC) reported monthly salaries of its all 11 employees LQ�LWV�ZHEVLWH��&(2�UHFHLYHG�7.��������DQG�WKH�ORZHVW�SDLG�HPSOR\HH�UHFHLYHG�7.���������D�UDWLR�RI�������7KH�)HGHUDWLRQ�RI�1*2V�LQ�%DQJODGHVK�DOVR�GRHV�QRW�KDYH�DQ\�UHJXODWLRQ�RQ�1*2�¿QDQFLDO�PDQDJHPHQW�DQG�UHSRUWLQJ��)RUHLJQ�&RQWULEXWLRQ�5HJXODWLRQ�$FW������RI�,QGLD�LQ�6HFWLRQ�����0DLQWHQDQFH�RI�$FFRXQWV��UHTXLUHV��D��an account of any foreign contribution received and (b) a record as to the manner in

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)�

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$V� WKH� FRUSRUDWH� VHFWRU� PXVW� SXEOLVK� LWV� ¿QDQFLDO� VWDWHPHQWV� DV� LW� XVHV� SXEOLF�shareholders’ money so a public sector organization must do the same because it XVHV�SXEOLF�WD[�PRQH\��6R�LV�WKH�FDVH�IRU�1*2V�EHFDXVH�WKH\�UHFHLYH�IXQGV�IRU�SXEOLF�EHQH¿W��$�EDODQFH�VKHHW�RI�DQ�RUJDQL]DWLRQ�VD\V�ZKR�LW�WUDQVDFWV�ZLWK��ZKR�LW�RZHV�to, who are its borrowers, what are its funds position, and strengths and weaknesses. ,W�VD\V�ZKDW�DUH�LWV�FDSLWDO�H[SHQGLWXUHV�DQG�VR�LWV�IXWXUH��%DODQFH�VKHHW�LV�D�SLFWXUH�RI�DQ�RUJDQL]DWLRQ¶V�DFFRXQWDELOLW\��,W�VD\V�DERXW�WKH�DVVHWV��OLDELOLWLHV�DQG�WKH�IXQG�SRVLWLRQ�� ,Q� WKH� DEVHQFH� RI� D� EDODQFH� VKHHW��ZH� GR� QRW� NQRZ�ZKDW� DVVHWV� LW� RZQV�DQG�KRZ�WKHVH�DUH�PDQDJHG��6LPLODU�LV�WKH�FDVH�ZLWK�OLDELOLWLHV��)LQDQFLDO�&RQGXFW�$XWKRULW\� RI� 8.� LQFOXGHV� FRUSRUDWH� OLNH� VWDQGDUG� ¿QDQFLDO� VWDWHPHQWV� QDPHO\�VWDWHPHQW� RI� FRPSUHKHQVLYH� LQFRPH�� VWDWHPHQW� RI� ¿QDQFLDO� SRVLWLRQ�� VWDWHPHQW� RI�FKDQJHV� LQ� HTXLW\�� VWDWHPHQW� RI� FDVK� ÀRZV� DQG� QRWHV� WR� WKH� ¿QDQFLDO� VWDWHPHQWV��7KHVH� ¿QDQFLDO� VWDWHPHQWV�ZLOO� LPSOHPHQW� LQWHUQDO� DFFRXQWLQJ� DQG� DGPLQLVWUDWLYH�SURFHGXUHV�QHFHVVDU\�WR�WKH�WUDQVSDUHQW�DQG�SURSHU�XVH�RI�¿QDQFLDO�DQG�RWKHU�UHVRXUFHV��7KH�PDMRULW\�RI� ,$6�DQG�,)56�ZKLFK�DUH�DSSOLFDEOH�IRU�SUR¿W�PDNLQJ�HQWLWLHV�DUH�DOVR� UHOHYDQW� IRU� DOO� QRW� IRU�SUR¿W�RUJDQL]DWLRQV� DQG�1*2V�� ,36$6�DSSOLFDEOH� IRU�JRYHUQPHQWV�DUH�DOVR�ODUJHO\�VLPLODU�WR�,$6�DQG�,)56�LQ�WKH�FRUSRUDWH�VHFWRU��,QFRPH�VWDWHPHQW�� EDODQFH� VKHHW�� FDVK� ÀRZ� VWDWHPHQW�� DQG� QRWHV� WR� WKHVH� VWDWHPHQWV� DUH�YHU\�PXFK� UHOHYDQW��3URMHFW� FRVWV� DQG�DGPLQLVWUDWLYH�FRVWV� DUH�GLVFORVHG� WR� DVVHVV�WKH� H൶FLHQF\� LQ� RSHUDWLQJ� DQG� DGPLQLVWUDWLYH� DFWLYLWLHV�� ([FHVV� RI� LQFRPH� RYHU�H[SHQGLWXUHV� RU� VXUSOXV� LV� SXW� LQ� VHFXUHG� LQYHVWPHQWV� DQG� WKH� DFFXPXODWHG� IXQG�LV�XVHG� IRU�GHVLJQDWHG�REMHFWLYHV��7KHUH�DUH� VRPH�GL൵HUHQFHV��&DVK�DFFRXQWLQJ� LQ�OLPLWHG�VFDOH�LV�DSSOLHG�LQ�VRPH�SXEOLF�VHFWRU�RUJDQL]DWLRQV��H�J���LQ�WD[�DXWKRULWLHV��JRYHUQPHQW�GHSDUWPHQWV��,Q�FKDULWLHV�DQG�1*2V�WKHUH�DUH�DFFRXQWLQJ�IRU�UHVWULFWHG�DQG�XQUHVWULFWHG�IXQGV��8UJHQW�JUDQWV�DUH�VKRZQ�LQ�EDODQFH�VKHHW�DV�UHVWULFWHG�IXQGV��7KH�FRPPRQ�JRDO�RI�DOO�RUJDQL]DWLRQV�DUH�WKH�WUDQVSDUHQF\�DQG�H൶FLHQW�XWLOL]DWLRQ�RI� UHVRXUFHV�� GHWDLOHG� GLVFORVXUH� RI� UHYHQXH�� H[SHQVHV�� DVVHWV�� OLDELOLWLHV� DQG� WKH�DFFXPXODWHG�IXQGV��/LNH�FRUSRUDWH�VHFWRU�DFFUXDO�DFFRXQWLQJ�LV�DSSOLFDEOH�LQ�WKHVH�RUJDQL]DWLRQV�� WKDW� LV�� LQFRPH� DQG� H[SHQGLWXUH� DUH� UHFRUGHG�ZKHQ� LQFXUUHG� UDWKHU�WKDQ�ZKHQ�WKH\�DUH�SDLG��8.�1*2V�UHSRUW�GHWDLOHG�¿QDQFLDO�VWDWHPHQWV�ZLWK�QRWHV�OLNH�LQ�FRUSRUDWH�VHFWRU��,W�VKRZV�GHWDLOV�RI�HPSOR\HH�UHPXQHUDWLRQ�FODVVL¿HG�E\�VWD൵�DQG�&(2�DQG�QXPEHU�RI�HPSOR\HHV�UHFHLYLQJ�VDODU\�DQG�EHQH¿WV�LQ�GL൵HUHQW�UDQJHV��,W�DOVR�GLVFORVHV��VRFLDO�VHFXULW\�EHQH¿WV�DQG�SHQVLRQ�FRVWV��&KDULWLHV�6WDWHPHQW�RI�5HFRPPHQGHG� 3UDFWLFH� �6253�� E\�&KDULWLHV�&RPPLVVLRQ� �2൶FH� RI� WKH� 6FRWWLVK�Charities Regulator, OSCR) has 29 sections and numerous subsections in 195 pages RQ� DFFRXQWLQJ� DQG� UHSRUWLQJ� E\� FKDULWLHV�� ,W� UHFRPPHQG� H[SHQGLWXUHV� FODVVL¿HG�E\� SURJUDP�� IXQG� UDLVLQJ�� DQG� PDQDJHPHQW� DQG� JHQHUDO�� ,W� UHTXLUHV� WKH� GHWDLOHG�GLVFORVXUH� RI� WKHVH� PDLQ� KHDGV� RI� H[SHQGLWXUHV� LQFOXGLQJ� WUHDWPHQW� RI� HPSOR\HH�VDODU\� DQG� EHQH¿WV� �VHFWLRQV� ������ �������$QG� IRU� WUXVWHHV�� GHWDLOHG� GLVFORVXUH� RI�

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5HSRUWLQJ� DQG� GLVFORVXUH� LQ� 86� 1*2V� LV� UHJXODWHG� E\� )RUP� ���� RI� ,QWHUQDO�5HYHQXH� 6HUYLFH�&RGH��1*2V� GR� QRW� GLVFORVH� H[HFXWLYH� DQG�&(2� FRPSHQVDWLRQ�LQ� WKHLU� DQQXDO� UHSRUWV� DQG� ¿QDQFLDO� VWDWHPHQWV�� %XW� WKH\� DUH� UHTXLUHG� WR� ¿OO� LQ�)RUP����� �3DUW� ,,��ZKHUH� WKH\�GLVFORVH� DOO� WKHVH� LQIRUPDWLRQ��'HWDLOHG�SURFHVV�RI�¿[LQJ�H[HFXWLYH�FRPSHQVDWLRQ�LV�RXWOLQHG�KHUH�LQFOXGLQJ�FRPSHQVDWLRQ�FRPPLWWHH��various components of compensation, the compensation survey, and compensation in similar nature and similar size organizations. The Charities (Accounts and Reports) 5HJXODWLRQV��1RUWKHUQ�,UHODQG�������UHTXLUH�FRUSRUDWH�VHFWRU�W\SH�¿QDQFLDO�VWDWHPHQWV�DQG�UHODWHG�QRWHV�LQ�FKDULWLHV��6HFWLRQ�����6LQJDSRUH�UHJXODWLRQV������IXUWKHU�UHTXLUH�GLVFORVXUH�RI�H[HFXWLYH�UHPXQHUDWLRQ��)LIWK�6FKHGXOH��3DUW����

2.1.2 Financial Reporting in the PLCs

7KHUH�LV�D�UHPXQHUDWLRQ�FRPPLWWHH��'LVFORVXUH�RI�GLUHFWRUV¶�UHPXQHUDWLRQ�FODVVL¿HG�E\� YDULRXV� FRPSRQHQWV� LV� UHTXLUHG� E\� WKH� &RPSDQLHV�$FW� ����� LQ� 8.��7KHUH� LV�DOVR� D�5HPXQHUDWLRQ�5HSRUW� UHTXLUHG� E\� WKH�/DUJH� DQG�0HGLXP�VL]HG� FRPSDQLHV�and Groups (Accounts and Reports) (Amendment) Regulations 2013. Directors’ remuneration policy is disclosed in detail including performance basis. Employment LQFOXGHV�ZDJHV�DQG�VDODULHV��VRFLDO�VHFXULW\�FRVWV��SRVW�HPSOR\PHQW�EHQH¿WV��VKDUH�EDVHG� SD\PHQWV�� (PSOR\PHQW� FRVW� LV� IXUWKHU� FODVVL¿HG� E\� FRXQWULHV�� 5HWLUHPHQW�EHQH¿WV� LV� GHVFULEHG� LQ� GHWDLO� LQFOXGLQJ� HPSOR\HU� DQG� HPSOR\HH� FRQWULEXWLRQ��pension fund assets and liabilities, and actuary valuation. Share-based payments DUH�FODVVL¿HG�LQWR�SUR¿W�VKDULQJ�EHQH¿WV�DQG�ORQJ�WHUP�VKDUH�RZQHUVKLS�DQG�VKDUH�RSWLRQ� VFKHPHV�� )LYH� NH\� H[HFXWLYHV¶� WRWDO� UHPXQHUDWLRQ� DQG� YDULRXV� FRPSRQHQWV�are disclosed by names. Remuneration committee disclosure includes members, H[WHUQDO�DGYLVRUV� WR� WKH�FRPPLWWHH�DQG� WKHLU� IHHV�� ,Q�86$��D�3UR[\�6WDWHPHQW�KDV�DURXQG� ��� SDJHV� GHDOLQJ�ZLWK� H[HFXWLYH� FRPSHQVDWLRQ�� FRPSHQVDWLRQ� FRPPLWWHH��compensation discussion and analysis. About one-third of that deals with details RI� GLUHFWRUV¶� FRPSHQVDWLRQ� FODVVL¿HG� LQWR� FDVK� DQG� VWRFN�EDVHG� FRPSHQVDWLRQ��,W�DOVR�GLVFORVHV� WKH�PHGLDQ�SD\�DQG� WKH�KLJKHVW�GLUHFWRU¶V�SD\�DQG� WKHLU� UDWLR�� � ,Q�WKH� DQQXDO�SUR[\� VWDWHPHQW�� D� FRPSDQ\�PXVW�GLVFORVH� LQIRUPDWLRQ�FRQFHUQLQJ� WKH�DPRXQW�DQG�W\SH�RI�FRPSHQVDWLRQ�SDLG�WR�LWV�FKLHI�H[HFXWLYH�R൶FHU��FKLHI�¿QDQFLDO�R൶FHU�DQG�WKH�WKUHH�RWKHU�PRVW�KLJKO\�FRPSHQVDWHG�H[HFXWLYH�R൶FHUV��$�FRPSDQ\�

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)�

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3. METHOD

This paper wants to study employee costs of NGOs and compare them with those of other companies. The study is based on the most recent annual reports and in most RI�WKH�FDVHV�LW� LV����������,Q�RQH�RU� WZR�FDVHV�� WKH�PRVW�UHFHQW�UHSRUW� LV�DYDLODEOH�IRU� ������ 0RVW� RI� WKH� 1*2V� GLVFORVH� H[SHQGLWXUH� E\� �L�� SURJUDP� DFWLYLWLHV�� �LL��IXQG�UDLVLQJ��DQG��LLL��PDQDJHPHQW�DQG�JHQHUDO�H[SHQVHV��%DQJODGHVK�5HG�&UHVFHQW�

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Society Annual Report 2017 discloses establishment cost in place of management and JHQHUDO�EXW������$QQXDO�UHSRUW�GRHV�QRW�HYHQ�GLVFORVH�WKDW�LQIRUPDWLRQ��,Q�VRPH�FDVHV�particularly American incorporated NGOs, annual report does not disclose detailed ¿QDQFLDO� VWDWHPHQWV� EXW� WKHLU� DXGLWHG� ¿QDQFLDO� VWDWHPHQWV� DUH� SXEOLFO\� DYDLODEOH��,Q�VXFK�FDVHV��UHTXLUHG�GDWD�KDV�EHHQ�FROOHFWHG�IRUP�WKHLU�¿QDQFLDO�VWDWHPHQWV�EXW�FKHFNHG�DQG�YHUL¿HG�IURP�WKHLU�¿OOHG�LQ�,56�)RUP������,Q�,56�)RUP������GHWDLOHG�LQIRUPDWLRQ�DUH�DYDLODEOH��QXPEHU�RI�HPSOR\HHV�LQ�3DUW�������WRWDO�UHYHQXH�LQ��������employee cost in 1(15), CEO or highest paid director’s compensation in Schedule J 3DUW�,,��DQG�WUDYHOLQJ�H[SHQVH�LQ�3DUW�,;������$PHULFDQ�5HG�&URVV��2[IDP�$PHULFD��3DWK¿QGHU� ,QWHUQDWLRQDO��&$5(��5HG�&UHVFHQW��/DQGHVD� IDOO� LQWR� WKHVH� FDWHJRULHV��:H�WULHG�WR�FRYHU�PDQ\�LQWHUQDWLRQDO��,QGLDQ�DQG�%DQJODGHVKL�1*2V�EXW�WKHLU�DQQXDO�UHSRUWV�GR�QRW�GLVFORVH�IXOO�¿QDQFLDO�VWDWHPHQWV��SDUWLFXODUO\�HPSOR\PHQW�FRVW��WKH�LQWHUHVW�RI� WKH�VWXG\��DQG�VR�UHTXLUHG�GDWD�DUH�QRW�DYDLODEOH��:DWHU�*OREDO��*OREDO�$OOLDQFH� IRU� 7UD൶FNLQJ� DJDLQVW�:RPHQ�� 3HDFH� &RUSV�� 2SHQ� 6RFLHW\� )RXQGDWLRQ��6RURV� )RXQGDWLRQ��� *RRQM� ,QGLD� DQQXDO� UHSRUWV� DQG� DOVR� ¿QDQFLDO� VWDWHPHQWV� GR�QRW� GLVFORVH� HPSOR\PHQW� FRVW�� WKH\� GLVFORVH� RQO\� DGPLQLVWUDWLRQ� FRVWV�� 5HOLDEOH�GDWD�RQ�QXPEHU�RI�HPSOR\HHV�LV�QRW�DYDLODEOH�IRU�:RPHQ�IRU�:RPHQ�,QWHUQDWLRQDO��86��� +HLQULFK� %ROO� 6WLIWXQJ� �(XURSH��� *DQGKL� 3HDFH� )RXQGDWLRQ� �,QGLD��� 7KHVH�1*2V� DUH� WKHUHIRUH� H[FOXGHG�� &HQWUH� IRU� ,QWHJUDWHG�5XUDO�'HYHORSPHQW� IRU�$VLD�DQG�3DFL¿F��&,5'$3��LV�D�UHJLRQDO��LQWHUJRYHUQPHQWDO��DQG�DXWRQRPRXV�LQVWLWXWLRQ�ZKLFK�ZRUNV� IRU� LQWHJUDWHG� UXUDO� GHYHORSPHQW�� ,WV� DQQXDO� UHSRUWV� GR� QRW� GLVFORVH�¿QDQFLDO�VWDWHPHQWV��VD\LQJ�³XQDXGLWHG�¿QDQFLDO�UHSRUW�KDV�EHHQ�GURSSHG��IURP�WKH�DQQXDO�UHSRUW��IRU�FRQ¿GHQWLDOLW\�´�$QQXDO�UHSRUWV�ZLWK�QRWHV�DQG�VHSDUDWH�GLVFORVXUH�RI� HPSOR\HH� VDODULHV� DQG� EHQH¿WV� DUH� DYDLODEOH� IRU� ���1*2V� ����%DQJODGHVKL�� ��,QGLDQ��DQG����JOREDO���1*2$%�KDV�D�OLVW�RI������QDWLRQDO�DQG�LQWHUQDWLRQDO�1*2V�LQ� %DQJODGHVK� EXW� DQQXDO� UHSRUWV� DUH� DYDLODEOH� RQO\� IRU� ��� %DQJODGHVK� 1*2V��%DQJODGHVKL� 1*2V� OLNH� %(/$�� %527,�� %:73�� *RQRVKDVWKD� .HQGUR�� 6XFKDQD�)RXQGDWLRQ� DQG� RWKHUV� GR� QRW� SXEOLVK� DQQXDO� UHSRUWV��.DULWDV�%DQJODGHVK�$QQXDO�5HSRUW�ZLWK�7.�� �����PLOOLRQ� RI� UHYHQXH� GRHV� QRW� GLVFORVH� HPSOR\HH� VDODU\� DQG�EHQH¿WV��$QQXDO�UHSRUW�DQG�DFFRXQWV�ZHUH�IRXQG�IRU����LQWHUQDWLRQDO�1*2V�

The paper compares NGO’s employee costs with Bangladesh Bureau of Statistics �%%6��¿UPV¶�HPSOR\PHQW�FRVW��%%6�ODWHVW�GDWDEDVH�LQ������KDV�������PDQXIDFWXULQJ�LQGXVWULHV�ZLWK���RU�PRUH�HPSOR\HHV��������PLFUR�ZLWK����WR����HPSOR\HHV��������VPDOO� ZLWK� ��� WR� ��� HPSOR\HHV�� ����� PHGLXP� ZLWK� ���� WR� ���� HPSOR\HHV�� DQG������ODUJH�ZLWK�PRUH�WKDQ�����HPSOR\HHV���%%6�GDWD�LV�EDVHG�RQ�EXVLQHVV�UHJLVWHU��Employment cost comprises of salary, house rent, medical allowance and other DOORZDQFHV�� ,W�GRHV�QRW� LQFOXGH�SURYLGHQW� IXQG�DQG�ERQXV�EHFDXVH� LQ�PRVW�RI�RXU�LQGXVWULHV� WKHVH�DUH�DEVHQW� �&KRZGKXU\���������������(PSOR\HHV� LQFOXGH�ZRUNLQJ�proprietors, partners, and family members.

7R�YHULI\�%%6�GDWD�WKH�DXWKRU�FROOHFWHG�GDWD�IURP�SXEOLF�OLPLWHG�FRPSDQLHV��,Q�PRVW�RI�WKH�FDVHV���������DQQXDO�UHSRUWV�ZHUH�DYDLODEOH��8QLWHG�$LU¶V�DQQXDO�UHSRUW�ZDV�DYDLODEOH� IRU����������7ZR�¿UPV� LQ�RUGHU�RI�DOSKDEHW�KDYH�EHHQ� WDNHQ� IURP�HDFK�LQGXVWU\��EDQN��¿QDQFLDO�LQVWLWXWLRQV��SKDUPDFHXWLFDOV��HQJLQHHULQJ��FHPHQW��IXHO�DQG�

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)10

SRZHU��VHUYLFH�DQG�UHDO�HVWDWH��IRRG�DQG�DOOLHG��,7��WH[WLOH��WUDYHO�DQG�OHLVXUH��FHUDPLF��WHOHFRPPXQLFDWLRQ��DQG�SDSHU�DQG�SULQWLQJ��OLVWHG�LQ�WKH�)LQDQFLDO�([SUHVV��7KXV�D�WRWDO�RI����¿UPV�RU���[���LQGXVWULHV��KDYH�FRPH�LQ�WKLV�SURFHVV��+HUH�WRWDO�UHYHQXH�LV� HTXDO� WR� VDOHV� UHYHQXH� DQG�RWKHU� LQFRPH��(PSOR\HH� FRVW� LQFOXGHV� WRWDO� VDODULHV�DQG�EHQH¿WV� LQFOXGLQJ�SURYLGHQW� IXQG�DQG�ERQXV��7KH�GDWD�KDV�EHHQ�FRPSLOHG�E\�WDNLQJ�ZDJHV�� VDODULHV�DQG�EHQH¿WV� IURP�WKH�FRVW�RI�JRRGV�VROG�� IURP�JHQHUDO�DQG�DGPLQLVWUDWLRQ�H[SHQVHV��DQG�IURP�VHOOLQJ�DQG�GLVWULEXWLRQ�H[SHQVHV��%DUDND�3RZHU�/WG�GRHV�QRW�GLVFORVH�ZDJHV�DQG�VDODULHV�RI�SURGXFWLRQ�DQG�WKHUHIRUH�RPLWWHG�IURP�WKH�VDPSOH��%DQNV�DQG�¿QDQFLDO�LQVWLWXWLRQV�GLVFORVH�WRWDO�VDODULHV�DQG�EHQH¿WV�LQ�RQH�OLQH��0XWXDO� IXQGV�KDYH�EHHQ� H[FOXGHG� IRU� DEVHQFH�RI� UHOHYDQW� LQIRUPDWLRQ��+HUH�only share related data are available.

Since there are international NGOs in the sample, to compare with them the author WRRN�LQWR�VDPSOH����FRPSDQLHV�IURP�WKH�/RQGRQ�6WRFN�([FKDQJH��1HZO\�HVWDEOLVKHG�¿UPV�������RU�������ZHUH�H[FOXGHG��$OO�WKHVH�FRPSDQLHV�DUH�IURP�DOSKDEHW�$��7KLV�method of choosing the sample is free from any bias. The sample covers wide varieties RI�LQGXVWULHV�OLNH�EDQNV��¿QDQFLDOV��UHDO�HVWDWH��UHWDLOV��WUDYHO�DQG�OHLVXUH��KHDOWK�FDUH��goods and services, food, construction and materials, energy, technology. Table 4 JLYHV�WKH�UHVXOWV�ZLWK�WKHVH�FRPSDQLHV��)RU�FRPSDULQJ�86�LQFRUSRUDWHG�1*2V�WKH�DXWKRU�XVHG�&KHQJ�HW�DO���������3D\6FDOH�GDWDEDVH�RI������WR�FDOFXODWH�&(2�SD\�DQG�ZRUNHU�SD\�LQ�����FRPSDQLHV�

1*2V�KDYH�SHUPDQHQW�HPSOR\HHV�DQG�YROXQWHHUV��9ROXQWHHUV¶�VDODULHV�DQG�EHQH¿WV�DUH�LQFOXGHG�LQ�WKH�SURJUDP�FRVWV��6DODU\�DQG�EHQH¿WV�GLVFORVHG�DUH�H[FOXVLYHO\�IRU�the permanent employees of the parent country and the countries where the NGOs ZRUN�� 6DODULHV� DQG� EHQH¿WV� LQFOXGH� VRFLDO� VHFXULW\� EHQH¿WV� DQG� SHQVLRQV�� 0DQ\�NGOs do not disclose number of employees in the annual reports and in such cases the data is collected from their other websites.

Data has been double checked when unusual patterns observed in any variables under the study.

4. RESULTS

The NGOs pay 4.2 times of their country average pay. Only 5 pay less (Table 1). Salary DQG�EHQH¿WV�LQ�WKH����%DQJODGHVK�1*2V�XQGHU�WKH�VWXG\�UDQJH�IURP�7.���������LQ�$LQ�2�6DOLVK�.HQGUR�WR�7.����������LQ�%5$&��7KH�DYHUDJH�ZDV�7.����������WRWDO�UHPXQHUDWLRQ�7.�������P�GLYLGHG�E\�WRWDO�QXPEHU�RI�HPSOR\HHV�������IURP�7DEOH�����$YHUDJH�UHPXQHUDWLRQ�LQ�%%6�ZDV�7.����������7DEOH�����$YHUDJH�VDODULHV�DQG�EHQH¿WV� LQ� 3/&V�ZDV�7.�� ������� RU� ������P�������� XVLQJ� WKH� GDWD� LQ�7DEOH� ���7KXV�HPSOR\HH�VDODULHV�DQG�EHQH¿WV�LQ�%DQJODGHVKL�1*2V�ZDV������WLPHV�RU��7.���������7.����������WKDW�RI�3/&V�DQG�����WLPHV�RU��7.���������7.����������WKDW�RI�%%6�¿UPV��,I�ZH�DGMXVW�R൶FLDO�&3,�������LQ������ZLWK������LQGH[�RI�������WKHQ�WKH�¿JXUH�LV�����RU�>�������^�������������������@��1*2V�ZLWK�IRUHLJQ�PRQH\��DQG�DOVR�foreign organizations) pay more to their employees than local organizations.

(PSOR\HH�6DODULHV�DQG�%HQH¿WV�DQG�7KHLU�'LVFORVXUHV�LQ�1*26��/HVVRQV�)URP�7KH�3/&6 11

7UDYHOOLQJ�H[SHQVHV�DUH�WDNHQ�DV�DQRWKHU�SUR[\�IRU�PDQDJHULDO�SHUTXLVLWHV��0DQDJHULDO�VDODULHV�DQG�EHQH¿WV��H[HFXWLYH�VDODULHV�DQG�EHQH¿WV��DUH�QRW�GLVFORVHG�VHSDUDWHO\�LQ�PRVW�RI�RXU�RUJDQL]DWLRQV�ZKHWKHU�WKHVH�DUH�3/&V��JRYHUQPHQW�DJHQFLHV��RU�1*2V��2QH� SRVVLEOH� SUR[\� IRU� PDQDJHULDO� SHUTXLVLWHV� LV� WUDYHOOLQJ� H[SHQVHV�� 8VXDOO\�H[HFXWLYHV� QRW� WKH� PLG� DQG� ORZHU� OHYHO� HPSOR\HHV� GR� WKH� �IRUHLJQ�� WUDYHOOLQJ��7UDYHOOLQJ�H[SHQVH�KRZHYHU��ZDV�QRW�GLVFORVHG�VHSDUDWHO\�IRU�GRPHVWLF�DQG�IRUHLJQ�purpose. They travel for purposes like raising of funds, attending meetings, doing agreements, and also for recreations. Managers in NGOs may choose travelling as a ZD\�RI�IXO¿OOLQJ�VHOI�LQWHUHVW�DW�WKH�H[SHQVH�RI�WKHLU�RUJDQL]DWLRQV��7UDYHOLQJ�H[SHQVH�WR�UHYHQXH�LQ����%DQJODGHVK�1*2V�LV������RU�7.��P������7.������P��LQ�7DEOH����,Q�3/&V�XQGHU�WKH�VWXG\��WKH�¿JXUH�LV��������7.�����P�GLYLGHG�E\�UHOHYDQW�UHYHQXH�7.��������P���7KXV�WUDYHOLQJ�H[SHQVH�DV�D�UDWLR�RI�WRWDO�UHYHQXH�LQ�1*2V�ZDV�����WLPHV� WKDW�RI�3/&V��7KH� UHVXOW� LV� VLPLODU� IRU�DOO����1*2V�XQGHU� WKH�VWXG\� �ZKLFK�GLVFORVH�WUDYHOOLQJ�H[SHQVH��KDYH�WUDYHOOLQJ�H[SHQVH�RI����P�DQG�UHOHYDQW�UHYHQXH������P��7KXV�DYHUDJH�WUDYHOOLQJ�H[SHQVH�WR�WRWDO�UHYHQXH�ZDV������RU�������������

7DEOH����1*2V���5HYHQXH��(PSOR\PHQW�&RVW��7UDYHOOLQJ�([SHQVH����������(Amount in million. AvgEC in thousand)

NGOs FS Revenue EC % Travel 6WD൵ Avg.EC Country

Acid Survivors )RXQGDWLRQ��7.� yes 92 �� ���� na 42 ��� 143

Action Aid %DQJODGHVK��7.� yes ��� ��� 24 17 ��� 702 143

$FWLRQ�$LG�8.��� yes 52 � 15.3 na 175 �� 45Ain O Salish .HQGUR��7.�

yes �3� 150 �� 43 3.5 42 152 143

$PHULFDQ�5HG�&URVV���� yes ���� ���� �� �� 19000 77 ��Amnesty ,QWHUQDWLRQDO�/WG����� yes 73 42 57 0.05 ��� �� 45

$6$�ELOOLRQ�7.� yes 37.5 9 24 na 20259 454 143%115&��7.� yes 19.5 4.1 21 0.22 11 373 143%5$&�ELOOLRQ�7.� yes 73 20 27 1.9 ���� 2500 143%852�%DQJODGHVK��7.� yes ���� 2229 27 na ���� ��� 143&$03(��7.� yes 174 42 24 ���� 70 ��� 143 &$5(�,QWHUQDWLRQDO�8.��� yes 75 ��� ��� na 110 �� 45&,5'$3���������� 7.����� yes ���� 47 50 10.1 35 1351 143

&HQWUH�IRU�3ROLF\�'LDORJXH��7.�

yes(p) 145 �� �� na 71 1155 143

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)12

NGOs FS Revenue EC % Travel 6WD൵ Avg.EC Country

&$)�8.�*LYLQJ���� yes ��� 21.1 3.5 na 492 43 45&KLOGOLQH�,QGLD�)RXQGDWLRQ�,15� yes ��� 42 19 na 54 ��� 131

Dhaka Ahsania 0LVVLRQ��7.� yes ���� 1230 45 25 4352 ��� 143

)RUG�)RXQGDWLRQ���� yes ��� �� 7.7 5 ��� 110 ��*KDVKIXO��7.� yes ��� 129 50 na ��� ��� 143Global Giving )RXQGDWLRQ�,QF����� yes 57.5 5 9 ���� 57 �� ��

+HOHQ�.HOOHU�,QWHUQDWLRQDO����

yes(p) ��� 10 4.2 na 110 91 ��

Jagorani Chakra )RXQGDWLRQ��7.� yes ���� ��� 34 42 4143 204 143

/DQGHVD���� yes 12 7.7 �� na 120 �� ��McArthur )RXQGDWLRQ���� yes 10 4.1 41 0.07 91 45 45

1*2�)RUXP�IRU�3XEOLF�+HDOWK��7.�

yes (p) 313 125 40 na �� 1471 143

1LMHUD�.RUL��7.� yes (p) �� �� �� na ��� 177 143

2UELV�8.���� yes ���������� 1.5 19 na 31 �� 452;)$0�6WLFKWLQJ�,QWHUQDWLRQDO��� yes �� 9 32 1.1 ��� 54 45

2;)$0�8.���� yes ��� 124 30 na ���� �� 452;)$0�$PHULFD�,QF���� yes 91 34.9 �� 4.4 500 70 ��

3DWK¿QGHU�,QWHUQDWLRQDO���� no 153 40 �� ��� ��� 212 ��

Red Crescent 6RFLHW\�%'��7.� no ��� 205 50 na ��� ��� 143

6DMLGD�)RXQGDWLRQ��7.� yes 2447 774 32 51 ��� ���� 1436DYH�WKH�&KLOGUHQ�,QF����� no 794 104 13 10.1 ���� �� ��6DYH�WKH�&KLOGUHQ�8.���� yes 355 54 15 na 1500 �� 45

6KDNWL�)RXQGDWLRQ��,15� yes(p) 413 57 ���� 3.4 33 1727 131

(PSOR\HH�6DODULHV�DQG�%HQH¿WV�DQG�7KHLU�'LVFORVXUHV�LQ�1*26��/HVVRQV�)URP�7KH�3/&6 13

NGOs FS Revenue EC % Travel 6WD൵ Avg.EC Country

Transparency ,QWHUQDWLRQDO��7.� yes ��� 255 �� ��� ��� ���� 143

Trocaire (Euro) yes �� 13 19 na ��� 29 30:DWHU$LG�8.���� yes �� 24.4 30 na 753 32 45:RUOGUHDGHU���� no ��� 2.3 �� 0.2 34 �� ��:RUOG�9LVLRQ�,QWHUQDWLRQDO���� no ���� 101 ��� 9.1 1000 101 ��

::)�IRU�1DWXUH�,QF����� yes 323 �� �� 7.2 1073 �� �������Total ����� ���� ��� ����� 4009$YHUDJH���RI�revenue 33 1.9 4.2

times6RXUFH��FRPSLOHG�IURP�DQQXDO�UHSRUWV�DQG�¿QDQFLDO�VWDWHPHQWV

)6 � ¿QDQFLDO� VWDWHPHQWV�� (& � HPSOR\HH� FRVWV� RU� VDODULHV� DQG� EHQH¿WV�� � WRWDO� UHPXQHUDWLRQ� DV�D� SHUFHQWDJH� RI� WRWDO� UHYHQXH�� 7UDYHO WUDYHOOLQJ� H[SHQVH�� 6WD൵ QXPEHU� RI� IXOO�WLPH� HPSOR\HHV��$YJ(& DYHUDJH�HPSOR\HH�FRVW�DUULYHG�DW�GLYLGLQJ�(&�E\�VWD൵��&RXQWU\ DYHUDJH�VDODU\�DQG�EHQH¿WV�RI�DQ� HPSOR\HH� LQ� WKH� FRXQWULHV�� 3� LQ� EUDFNHW� VWDQGV� IRU� SDUWO\�ZKLFK�PHDQV� VKRUWHU� YHUVLRQ� RI� ¿QDQFLDO�VWDWHPHQWV��LQ�VRPH�FDVHV�DEVHQFH�RI�EDODQFH�VKHHW��DEVHQFH�RI�GHWDLOHG�FODVVL¿FDWLRQ�RI�LWHPV��DEVHQFH�RI�QRWHV�WR�WKH�LWHPV�DQG�¿JXUHV��%115& %DQJODGHVK�1*2V�1HWZRUN�IRU�5DGLR�DQG�&RPPXQLFDWLRQ��%852 %DVLF�8QLW�IRU�5HVRXUFHV�DQG�2SSRUWXQLWLHV��2;)$0�6WLFKWLQJ�,QWHUQDWLRQDO�GDWD�DYDLODEOH�IRU����������5HG�&UHVFHQW�%DQJODGHVK�GDWD�LV�IRU������DQG�LW�LV�HVWDEOLVKPHQW�FRVW�LQ�DEVHQFH�RI�HPSOR\HH�FRVWV��::) :RUOGZLGH�)XQG��&RXQWU\�DYHUDJH�KDV�EHHQ�WDNHQ�IURP�:RUO'DWD�LQIR��������([FKDQJH�UDWH�LQ������������ 7.���DQG��� 5V���

7DEOH����1RQ�1*2V��5HYHQXH��([SHQVHV��(PSOR\PHQW�&RVW��7UDYHOOLQJ�([SHQVH�����������(BBS data 2012)

BBS (billion taka) Revenue EC % Travel 6WD൵ AvgECTotal (42792 units) 5395 ��� 10.5 na ������� ������0LFUR��������XQLWV� ��� �� 10.1 na ������ ������6PDOO��������XQLWV� 1203 �� ��� na ������ 1123440HGLXP�������XQLWV� ���� 110 ��� na 1041220 ������/DUJH�������XQLWV� 2507 349 13.9 na ������� 117735PLCs (million taka)AB Bank ����� 2952 11.2 �� 2332 �������$O�$UDIDK�,VODPL�%DQN ����� ���� 14 34 ���� 1025529%D\�/HDVLQJ�DQG�,QYHVWPHQW 1547 �� 4.2 0.25 57 1140351%'�)LQDQFH 1995 �� 4.2 0.5 91 ������Advanced Chemical ,QGXVWULHV��$&,� 52017 3435 ��� ��� 9053 379432

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)14

PLCs (million taka) Revenue EC % Travel 6WD൵ AvgEC$&0(�/DERUDWRULHV 14343 2144 15 13 7000 ������$PEHH�3KDUPDFHXWLFDOV 335 ��� 37 0.7 1007 125124Aftab Automobiles 3927 150 4 2.1 ��� ������$]L]�3LSHV ��� ���� 10.5 1.1 122 211475Aramit Cement ���� 123 ��� 3.4 ��� ������&RQ¿GHQFH�&HPHQW 4429 ��� ��� 9.5 ��� 351117%'�:HOGLQJ�(OHFWURGHV 354 �� 7.3 4.9 175 ������Desco ����� 2254 ��� na 1510 1492715Eastern Housing 2932 377 ���� na ��� ������Saif powertec ���� 524 14.3 3 ��� ������$0&/�3UDQ 1990 ��� ��� 7.9 1141 ������$SH[�)RRG ���� 91 5 1.3 413 220339Aamra Tech ���� 75 ��� 2.1 127 590551Agni Systems ��� �� 24 na 245 ������$OKDM�7H[WLOHV ��� �� 10.3 0.15 ��� 92545$OOWH[�,QGXVWULHV ���� 154 ��� 1.5 ���� ������3HQLQVXOD�+RWHO�Chittagong 359 �� �� na 253 ������

8QLWHG�$LU ���� ��� 5.5 0.92 ��� ������)X�:DQJ�&HUDPLFV 525 �� 11 1.0 ��� ������Monno Ceramics ��� ��� 22 2.7 ���� 101130*UDPHHQ�3KRQH�(billion taka) 130 ��� ��� na 2355 �������

+DNNDQL�3XOS�DQG�3DSHU 312 29 9.3 na 223 130045.KXOQD�3ULQWLQJ�DQG�3DFNDJLQJ 313 14 4.4 0.5 100 140000Total 201710 ����� 793 37437Average 9.2 0.39 493442

6RXUFH��FRPSLOHG�IURP�DQQXDO�UHSRUWV5HYHQXH VDOHV� UHYHQXH�� RWKHU� LQFRPH�� (& HPSOR\PHQW� FRVW ZDJHV�� VDODULHV� DQG� EHQH¿WV� RI�PDQXIDFWXULQJ�� DGPLQLVWUDWLRQ�� DQG� VHOOLQJ� DQG� GLVWULEXWLRQ�� � (&� DV� D� SHUFHQWDJH� RI� UHYHQXH��7UDYHO WUDYHOOLQJ�H[SHQVH��6WD൵ QXPEHU�RI�IXOO�WLPH�HPSOR\HHV��$YJ(& DYHUDJH�HPSOR\HH�FRVW�DUULYHG�DW�GLYLGLQJ�(&�E\�VWD൵��%%6�¿JXUHV�LQ�ELOOLRQ�WDND��

����(PSOR\HH�6DODULHV�DQG�%HQH¿WV��)RUHLJQ�1*2V�YV�)RUHLJQ�3/&V

���8.�LQFRUSRUDWHG�1*2V��7DEOH����KDYH�WRWDO�HPSOR\PHQW�FRVW�RI�������P�DQG�WRWDO�number of full time employees of 9204, thus an average employee remuneration was ��������7KH� DXWKRU� WRRN����3/&V�ZLWK� DOSKDEHW�$� IURP� WKH�/RQGRQ�6WRFN�([FKDQJH�

(PSOR\HH�6DODULHV�DQG�%HQH¿WV�DQG�7KHLU�'LVFORVXUHV�LQ�1*26��/HVVRQV�)URP�7KH�3/&6 15

�7DEOH�����7KH�3/&V�KDYH�DQ�DYHUDJH�UHPXQHUDWLRQ�RI���������*ODVVGRRU��MREV�DQG�SD\�VHDUFK��VXUYH\�KDV�WKH�VLPLODU�¿QGLQJV��7KXV�HPSOR\HH�UHPXQHUDWLRQ�RI�3/&V�LV�KLJKHU�WKDQ�LQ�1*2V��(PSOR\HH�FRVW�WR�WRWDO�UHYHQXH�DOVR�LQ�3/&V������LQ�7DEOH����LV�KLJKHU�WKDQ�������LQ�8.�1*2V������P�HPSOR\HH�FRVW�GLYLGHG�E\������P�UHYHQXH�FRPSLOHG�IURP�7DEOH�����,W�VKRXOG�KRZHYHU��EH�QRWHG�WKDW�WKHVH�1*2V�ZRUN�PDLQO\�LQ�WKH�GHYHORSLQJ�FRXQWULHV�ZKHUH�VDODULHV�DQG�EHQH¿WV�DUH�ORZHU�WKDQ�WKRVH�LQ�WKH�KRPH�FRXQWU\�

,Q�WKH����86�LQFRUSRUDWHG�1*2V��7DEOH�����WRWDO�UHPXQHUDWLRQ�ZDV��������P�DQG�WRWDO�QXPEHU�HPSOR\HHV�ZDV��������WKXV�DQ�DYHUDJH�HPSOR\HH�UHPXQHUDWLRQ�ZDV���������(PSOR\HH� FRPSHQVDWLRQ� DQG� &(2� UHPXQHUDWLRQ� LV� GLVFORVHG� LQ� SUR[\� VWDWHPHQWV��3D\6FDOH�SDUWQHUHG�ZLWK�(TXLODU�� D� OHDGHU� LQ�H[HFXWLYH�FRPSHQVDWLRQ�DQG�HPSOR\HH�database and corporate governance data solutions, has calculated ratios for some of WKH�KLJKHVW�SDLG�&(2V�LQ�FRPSDQLHV�ZLWK�DQQXDO�UHYHQXH�RYHU����ELOOLRQ��&KHQJ�HW�DO���������XVHG�WKH�3D\6FDOH�GDWDEDVH�RI������WR�FDOFXODWH�&(2�SD\�DQG�ZRUNHU�SD\�LQ�����FRPSDQLHV��7KH�DYHUDJH�HPSOR\HH�SD\�ZDV���������86�&3,�DOO�LWHPV�ZDV�������LQ�������������LQ������DQG�������LQ�������7KXV�VDODU\�DQG�EHQH¿WV�LQ���������SULFH�VKRXOG�KDYH�EHHQ��������RU�>^���������������`������@[��������7KXV�1*2�DYHUDJH�HPSOR\HH�VDODU\�DQG�EHQH¿WV�DUH�ORZHU�WKDQ�WKDW�RI�ODUJHU�FRPSDQLHV¶�DYHUDJH�VDODU\�DQG�EHQH¿WV��7KH�UHVXOWV�DUH�FRQVLVWHQW�ZLWK�RWKHU�VWXGLHV�E\�7KH�*XDUGLDQ�-REV��%ULJKW�1HWZRUN��7KH�7KLUG�6HFWRU�LQ�8.��DQG�LQGHHG�DQG�IXQGV�IRU�1*2V�LQ�86$�7DEOH����5HYHQXH��(PSOR\PHQW�&RVW��7UDYHOOLQJ�([SHQVH������������$PRXQW�LQ�PLOOLRQ����

Average employment cost in thousands)

Revenue EC % 6WD൵ Avg.EC CEO RatioLondon Stock Exchange:AA plc (£) ��� 314 33 7337 43 733 17Abal Group plc (£) ��� ��� 72 35 �� 297 3.7Abcam plc (£) 225 �� 25 1001 �� ���� ��������AB Dynamics plc (£) 31 ��� 27 112 74 ��� ����������$FFHVV�,QWHOOLJHQFH�SOF ��� ��� �� 101 55 373 ���Accrol Group Holdings plc 137 13 10 509 �� 253 9.7Accsys Technologies plc �� 13 23 131 99 1500 15$FWLYH�(QHUJ\�*URXS�SO��� 1.3 ��� 130 39 �� 329 4.9 Adept Technology Group plc (£) 49 ���� 22 205 52 341 ���Aeorema Communications plc 4.5 ���� 21 19 51 104 2.0Aib Group plc (Euro) ���� 777 �� ���� �� ��� ��������Total 4400 1204 �������Average 27 ���� 579 9.4

6RXUFH��FRPSLOHG�IURP�DQQXDO�UHSRUWV�RI�WKH�FRPSDQLHV5HYHQXH � WRWDO� UHYHQXH�� (& � VDODULHV� DQG� EHQH¿WV� RI� DOO� HPSOR\HHV� LQFOXGLQJ� GLUHFWRUV�� � WRWDO�UHPXQHUDWLRQ�DV�D�SHUFHQWDJH�RI�UHYHQXH��VWD൵ QXPEHU�RI�HPSOR\HHV��$YJ(& DYHUDJH�HPSOR\PHQW�FRVW��&(2 VDODU\�DQG�EHQH¿WV�RI�&(2��5DWLR $YJ(&�GLYLGHG�E\�&(2

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)��

4.2 CEO and Employee Pay Ratio Disclosure in Foreign NGOs and PLCs

Average CEO pay ratio in 21 NGOs was 4.7 in Table 3. Here the CEO pay ratio is PRVWO\���WR���WLPHV�RI�DYHUDJH�HPSOR\HH�VDODU\�DQG�EHQH¿WV��)RUG�)RXQGDWLRQ�&(2�SD\�UDWLR�LV�DEQRUPDOO\�KLJKHU�ZKLFK�LV�����7KH�&(2�UDWLR�LQ����8.�3/&V�LV�����RQ�DYHUDJH�LQ�7DEOH����7KXV�&(2�SD\�UDWLR�LQ�1*2V�LV�PXFK�VPDOOHU�WKDQ�LQ�3/&V��7KXV�ERWK�HPSOR\HH�VDODULHV�DQG�&(2�VDODULHV�LQ�1*2V�DUH�ORZHU�WKDQ�LQ�3/&V�

7KH� DERYH� ¿QGLQJ� RI� &(2� SD\� UDWLR� LQ� 3/&V� LV� FRQVLVWHQW� ZLWK� RWKHU� VWXGLHV��:RUNLQJPXPV��D�8.�MRE�¿QGHU�UHSRUWHG�D�VXUYH\�UHVXOW�RQ����$XJXVW��������7KH�&(2�SD\� UDWLR� LQ� VPDOOHU� FRPSDQLHV� UDQJHV� IURP��� WR���� WLPHV� DQG����� WLPHV� LQ�)76(����� ODUJHU�¿UPV��7KH� UHSRUW� VKRZV�)76(�����&(2�PHGLDQ�SD\�ZDV�������PLOOLRQ�LQ������DQG�WKH�DYHUDJH��PHGLDQ��8.�IXOO�WLPH�ZRUNHU�HDUQV����������D�UDWLR�RI������/DUJHU�FRPSDQLHV�KDYH�KLJKHU�UDWLRV��7KH�UHSRUW�DOVR�KLJKOLJKWV�WKH�GLVSDULW\�in pension contribution payouts to CEOs compared with the average employee. As a percentage of base salary, CEOs get a pension contribution (or payment in lieu of) ZRUWK������%\�FRQWUDVW��HPSOR\HHV�JHW�D�FRQWULEXWLRQ�ZRUWK����RI�WKHLU�ZDJHV��7KH�PHGLDQ�UDWLR�UDQJHV�IURP���WR�����ZLWK�D�PHGLDQ�RI����IRU�WKH�)76(���������IRU�WKH�)76(�����DQG����IRU�WKH�)76(�6PDOO&DS��7KH�DYHUDJH�&(2�WR�ZRUNHU�SD\�UDWLR�IRU�WKH�����FRPSDQLHV�LQFOXGHG�LQ�WKLV�UHSRUW�VWDQGV�DW�DERXW����WR����ZLWK�VRPH�&(2V�PDNLQJ�PRUH� WKDQ����� WLPHV� WKH�PHGLDQ� VDODU\�RI� WKHLU� HPSOR\HHV�±� MXVW� LQ� FDVK��EDVH�SD\��ERQXVHV��SUR¿W�VKDULQJ��HWF����0DQ\�&(2V�UHFHLYH�VXEVWDQWLDO�VWRFN�RSWLRQ�JUDQWV�DQG�SHUNV�DV�SDUW�RI�WKHLU�FRPSHQVDWLRQ��ZKLFK�FDQ�PRUH�WKDQ�TXDGUXSOH�WKHLU�total annual pay. But similar data for employees by company is not readily available, so only cash compensation for both CEOs and workers was used to calculate ratios for this report.

$YHUDJH� &(2� SD\� LQ� ODUJH� 86� 3/&V� LQ� &KHQJ� HW� DO�� ZDV� ����� PLOOLRQ�� ,Q� ����0DVVDFKXVHWWV�1*2V�ZLWK�PHGLDQ�EXGJHW����PLOOLRQ��LW�ZDV���������GXULQJ�������7KLUG�6HFWRU��1HZ�(QJODQG�������$�&RPSHQVDWLRQ�6XUYH\�RI�DQG� IRU�1RQSUR¿WV�LQ� 0DVVDFKXVHWWV� DQG� $GMRLQLQJ� &RPPXQLWLHV��� ,Q� ������ WKH� &(2�WR�ZRUNHU�FRPSHQVDWLRQ�UDWLR�LQ�WKH�8QLWHG�6WDWHV�VWRRG�DW�DERXW����WR����DFFRUGLQJ�WR�D������UHSRUW�E\�WKH�(FRQRPLF�3ROLF\�,QVWLWXWH��%XW�VWDUWLQJ�LQ�WKH�����V�XS�WKURXJK�������³LQÀDWLRQ�DGMXVWHG�&(2�FRPSHQVDWLRQ�LQFUHDVHG�����SHUFHQW��D�ULVH�DOPRVW�GRXEOH�stock market growth and substantially greater than the painfully slow 10.9 percent growth in a typical worker’s annual compensation over the same period.7DEOH����$YHUDJH�(PSOR\HH�3D\��&(2�RU�+LJKHVW�3DLG�'LUHFWRU�3D\�DQG�&RPSUHVVLRQ�5DWLR�

in NGOs. (Amount in thousand)

Average Pay CEO Pay Ratio$FWLRQ�$LG�8.���� �� 110 2.4$PQHVW\�,QWHUQDWLRQDO�/WG����� �� 145 2.2&$5(�,QWHUQDWLRQDO�8.���� �� 135 2.3&$)�8.�*LYLQJ���� 43 ��� 4.3

(PSOR\HH�6DODULHV�DQG�%HQH¿WV�DQG�7KHLU�'LVFORVXUHV�LQ�1*26��/HVVRQV�)URP�7KH�3/&6 17

Average Pay CEO Pay Ratio0F$UWKXU�)RXQGDWLRQ���� 45 150 3.32UELV�8.���� �� 105 2.22[IDP�6WLFKWLQJ�,QWHUQDWLRQDO���� 54 125 2.32[IDP�8.���� �� 200 7.76DYH�WKH�&KLOGUHQ�8.���� �� 144 4.0:DWHU$LG�8.���� 32 134 4.2Trocaire (Euro) 29 125 4.3$PHULFDQ�5HG�&URVV����)RUG�)RXQGDWLRQ���� 110 ���� 21.7*OREDO�*LYLQJ�)RXQGDWLRQ�,QF����� �� 215 2.4+HOHQ�.HOOHU�,QWHUQDWLRQDO���� 91 397 4.4/DQGHVD���� �� 237 3.72[IDP�$PHULFD�,QF���� 70 504 7.23DWK¿QGHU�,QWHUQDWLRQDO���� 212 452 2.16DYH�WKH�&KLOGUHQ�,QF����� �� ��� ���:RUOGUHDGHU���� �� 125 ���:RUOG�9LVLRQ�,QWHUQDWLRQDO���� 101 534 5.3::)�IRU�1DWXUH����Average 4.76RXUFH��$YHUDJH�HPSOR\HH�SD\�IURP�7DEOH����&(2�RU�KLJKHVW�SDLG�GLUHFWRU�SD\�IURP�DQQXDO�UHSRUWV�RI�

8.�LQFRUSRUDWHG�1*2V��DQG�,56�)RUP�����IRU�86$�LQFRUSRUDWHG�1*2V

4.3 Analysis

&KDULWLHV�VSHQGLQJ�IRU�KXPDQLWDULDQ�SURMHFWV��OLNH�KXUULFDQH��IDPLQH��RUSKDQV��DQG�KRPHOHVV�� VSHQG� OHVV� RQ� HPSOR\HHV� �7DEOHV� �� DQG� ���� 6DYH� WKH�&KLOGUHQ�8.�SD\�SROLF\�FRPELQHV�HTXDOLW\�IDLUQHVV��¿VFDO�UHVSRQVLELOLW\��DQG�PDUNHW�FRPSHWLWLYHQHVV�in the charity sector. The performance and remuneration committee oversees their SD\�SROLF\�DQG�GHFLGHV�RQ�WKH�VDODULHV�RI�&(2�DQG�H[HFXWLYH�GLUHFWRUV��7KH�7UXVWHHV¶�$QQXDO�5HSRUW�SURYLGHV� LQIRUPDWLRQ�KRZ�H[HFXWLYH� UHPXQHUDWLRQ� LV� VHW��6DODU\� LV�market based, that is, similar to the median level of base pay that other organizations SD\�IRU�VLPLODU�UROHV�DW�RXU�MRE�VL]H�OHYHO��IXQFWLRQDOLW\�DQG�ORFDWLRQ��8.�FKDULWLHV�annual reports mention that they benchmark their salaries each year against similar organizations in the NGO sector and aim to pay at the median of salaries for each JUDGH��1RPLQDWLRQV�DQG�5HPXQHUDWLRQ�&RPPLWWHH�VHW�WKH�H[HFXWLYHV¶�UHPXQHUDWLRQ��The pay ratio between the highest paid employee and the median is 4.7 and this is an indication of the presence of monitoring on the organization’s approach to pay. &KDULWLHV�$LG�)RXQGDWLRQ��&$)��8.�*LYLQJ��*OREDO�*LYLQJ�DQG�2[IDP�8.�PRVWO\�VSHQG�IRU�KXPDQLWDULDQ�SURMHFWV�OLNH�KXUULFDQH��IDPLQH��RUSKDQV��DQG�KRPHOHVV��*OREDO�

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)��

*LYLQJ� VSHQW� �����P� RQ� GLVDVWHU� UHODWHG� SURMHFWV� RXW� RI� WRWDO� LQFRPH� RI� �����P��RU������+HOHQ�.HOOHU�,QWHUQDWLRQDO�ZRUNV�IRU� LPSURYLQJ�WKH�VLJKW�DQG�OLYHV�RI� WKH�world’s vulnerable by combating the blindness, poor health and nutrition. They spent ����P�RQ�PHGLFLQHV�DORQH�IRU�EOLQGQHVV�SUHYHQWLRQ�RXW�RI�WRWDO�LQFRPH�RI�����P�RU������*RYHUQPHQW�JUDQWV�FRPSULVH�����RI�WKHLU�WRWDO�UHYHQXH��&DUH�,QWHUQDWLRQDO�8.�UHFHLYHV����P�IURP�'),'��D�8.�JRYHUQPHQW�DJHQF\�RXW�RI�WRWDO�UHYHQXH�RI����P�ZKLFK�LV�����RI�WRWDO�UHYHQXH��$QRWKHU�UHVWULFWLRQ�RQ�KLJK�VDODULHV�DQG�EHQH¿WV�FRXOG�be the donor restrictions on use of funds in these NGOs. Their revenue is shown into XQUHVWULFWHG�DQG�WHPSRUDULO\�UHVWULFWHG�FODVVL¿FDWLRQV��5HVWULFWHG�IXQGV�DUH�HDUPDUNHG�IRU�VSHFL¿F�FKDULWDEOH�SURMHFWV��6DYH�WKH�&KLOGUHQ�,QWHUQDWLRQDO�LV�IXQGHG�����IURP�WKH�QDWLRQDO�� VWDWH� DQG� ORFDO�JRYHUQPHQWV� DQG� VSHQGV�����RQ�FKLOGUHQ�KHDOWK� DQG�QXWULWLRQ��,W�KDV�DOVR�XQUHVWULFWHG�DQG�WHPSRUDULO\�UHVWULFWHG�IXQGV�

$FWLRQ� $LG�� %5$&�� &LUGDS�� 6DMLGD� )RXQGDWLRQ� DQG� 7UDQVSDUHQF\� ,QWHUQDWLRQDO�LQ� %DQJODGHVK�� DQG� JOREDO� 3DWK¿QGHU�� 2;)$0� DQG�$PHULFDQ� 5HG� &URVV� DUH� WKH�ELJJHVW�VSHQGHUV�RQ�HPSOR\HH�VDODULHV�DQG�EHQH¿WV��7DEOH�����1RQH�RI�WKHVH�1*2V�work on emergency related disaster programs and therefore do not have immediate REOLJDWLRQV�� 7UDQVSDUHQF\� ,QWHUQDWLRQDO� ZRUNV� IRU� KXPDQ� ULJKWV� OLNH� IUHHGRP� RI�VSHHFK��JHQGHU�HTXDOLW\��VHFXODULVP��DQG�GHPRFUDF\�EXW�QRW�GLUHFWO\�GLVDVWHU�UHODWHG��7KH\�DUH�¿QDQFHG�IURP�WKH�HPEDVVLHV�RI�GRQRU�FRXQWULHV��7KHLU�DVVHWV�DQG�IXQGV�DUH�QRW�FODVVL¿HG�LQWR�GRQRU�UHVWULFWHG�DQG�XQUHVWULFWHG��%5$&�DQG�6DMLGD�)RXQGDWLRQ�KDYH� FRPPHUFLDO� YHQWXUHV� OLNH�PLFUR� FUHGLW�� UHDO� HVWDWH�� LQVXUDQFH�� WHD� HVWDWH�� ,7�VHUYLFHV��DQG�XQLYHUVLW\���%5$&�HDUQV�������RI�UHYHQXH�PRUH�WKDQ�RWKHU�FRPPHUFLDO�HQWHUSULVHV�DQG�����RI�LWV�LQFRPH�FDPH�IURP�PLFUR�¿QDQFH�DQG�WKLV�PLFUR�¿QDQFH�LQFRPH�LV�H[HPSW�IURP�FRUSRUDWH�LQFRPH�WD[��6DMLGD�)RXQGDWLRQ�HDUQHG�7.����P�VXUSOXV�IURP�PLFUR�FUHGLW�ZKLFK�ZDV�����RI�LWV�WRWDO�LQFRPH��7KH\�FKDUJHG�ORDQ�WR�XOWUD�SRRU��PD[LPXP�7.�������DW�����WR�����LQWHUHVW�EXW�UHFHLYHG�ORDQ�IURP�3.6)�DW���� WR�������7KH\�HDUQHG�7.��P� IURP�JUDQWV�ZKLFK�ZDV����RI� WRWDO� LQFRPH��:KHQ�FRUSRUDWH�LQFRPH�WD[�LV�H[HPSW��PDQDJHPHQW�KDV�WKH�DGGHG�LQFHQWLYH�WR�VSHQG�RQ�PDQDJHULDO�EHQH¿WV�DQG�SHUTXLVLWHV�EHFDXVH�WKH\�KDYH�H[WUD�IUHH�FDVK�ÀRZ��&3'�LV�D�WKLQN�WDQN��LWV�����IXQGV�FRPH�IURP�JUDQWV�� WKH�VRXUFHV�DUH�QRW�GLVFORVHG��LWV�¿QDQFLDO�VWDWHPHQWV�DUH�YHU\�VKRUW��LQFRPSOHWH��DQG�GRHV�QRW�GLVFORVH�QRWHV�DQG�DV�D�result employee cost was not known.

BBS companies are private and small companies where wages are less than living ZDJHV� �7DEOH�����3/&V�SD\�PRUH� WKDQ�SULYDWH�FRPSDQLHV��$PEHH� LV� D� ORVLQJ�¿UP�ZLWK� UHWXUQ� RQ� VDOHV� RQO\� DURXQG� ���� ,W� FDQQRW� JHQHUDWH� HQRXJK� VDOHV� WR� FRYHU�LWV� RSHUDWLQJ� H[SHQVHV� LQFOXGLQJ� HPSOR\HH� FRVW�� ,W� SDLG�7.�� �P� WR� �� GLUHFWRUV� RU�7.����P�SHU�KHDG� �1RWH� WR� WKH�¿QDQFLDO� VWDWHPHQWV��� WKXV�&(2�SD\� UDWLR�ZDV�����RU��7.�������������������$JQL�SDLG�����P�WR���GLUHFWRUV��7.�����P�WR�D�GLUHFWRU��DQG�WKHUHIRUH�WKH�UDWLR�ZDV������,W�LV�RQH�RI�WKH�VL[�¿UPV�OLVWHG�XQGHU�,7�LQGXVWU\�DQG�WKHUHIRUH�HQMR\V�VRPH�PRQRSRO\�SRZHU�DQG�HDUQV�D�UHWXUQ�RQ�VDOHV�RI�����ZKLFK�LV�PXFK�KLJKHU�WKDQ�WKH�DYHUDJH�UHWXUQ�LQ�WKH�LQGXVWU\��0RQQR�LV�D�ORVLQJ�¿UP��$YHUDJH�VDODU\�RI�D�GLUHFWRU�ZDV�7.������P��7KXV�WKH�UDWLR�ZDV����6DLI�3RZHUWHFK��EDWWHU\��material handling) is one of the two companies listed under the service industry and has therefore monopoly in this industry and paid more than the average.

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5. DISCUSSION AND CONCLUSION

$V�WKH�1*2¶V�DUH�UHFHLYLQJ�IXQGV�IRU�SXEOLF�EHQH¿W�LW�EHFRPHV�HVVHQWLDO�RQ�WKH�SDUW�RI�WKH�1*2V�WR�KDYH�JUHDWHU�¿QDQFLDO�WUDQVSDUHQF\�DQG�DFFRXQWDELOLW\�DQG�REVHUYH�VRXQG�¿QDQFLDO�PDQDJHPHQW�SUDFWLFHV�LQ�WKHLU�ZRUNLQJ��7KLV�SDSHU�PDNHV�DQ�DWWHPSW�WR� WKURZ� OLJKW� RQ� RQO\� RQH� DVSHFW� RI� ¿QDQFLDO� WUDQVSDUHQF\� DQG� DFFRXQWDELOLW\� LQ�WKH�XVH�RI�SXEOLF�IXQGV��VDODU\�DQG�EHQH¿WV�DQG�WUDYHOOLQJ�EHQH¿WV�FRQVXPHG�E\�WKH�HPSOR\HHV�DQG�H[HFXWLYHV�RI�ODUJH�%DQJODGHVK��,QGLD�DQG�LQWHUQDWLRQDO�1*2V��7KH�HYLGHQFHV�VKRZ�WKDW�HPSOR\HH�EHQH¿WV�SDUWLFXODUO\�VDODULHV�DQG�EHQH¿WV�DUH�KLJKHU�LQ�1*2V�LQ�GHYHORSLQJ�FRXQWULHV�WKDQ�LQ�WKH�FRUSRUDWH�VHFWRU��7KLV�¿QGLQJ�LV�SODXVLEOH�because the large NGOs operating in the developing countries have foreign money and these NGOs have some elements of multinational companies and they pay HPSOR\HHV� LQ� LQWHUQDWLRQDO� RU� DW� OHDVW� LQ� WKH� UHJLRQDO� VWDQGDUGV�� ,Q� WKH� GHYHORSHG�FRXQWULHV� KRZHYHU�� SDUWLFXODUO\� LQ� WKH� 8.� DQG� 86$�LQFRUSRUDWHG� 1*2V� �ZKLFK�ZRUN�JOREDOO\�� WKHVH�EHQH¿WV�DUH� ORZHU� WKDQ�LQ� WKH�FRUSRUDWH�VHFWRU�SXEOLF� OLPLWHG�FRPSDQLHV��%XW�WKH\�SD\�PRUH�WKDQ�WKHLU�FRXQWU\�DYHUDJH��$QRWKHU�LPSRUWDQW�¿QGLQJ�LV�WKDW�WKH�UDWLR�RI�VDODU\�DQG�EHQH¿WV�RI�1*2�&(2V�DUH�ORZHU�WKDQ�LQ�WKH�3/&V��7KXV�ERWK�HPSOR\HH�VDODULHV�DQG�&(2�VDODULHV�LQ�8.�DQG�86�1*2V�DUH�ORZHU�WKDQ�LQ�3/&V��7KHUH�DUH�QRLVHV�LQ�WKH�VWXG\�KRZHYHU��)LUVW��VDODULHV�DQG�EHQH¿WV�SDLG�E\�1*2V�DUH�QRW� FODVVL¿HG�E\� FRXQWULHV� WKH\�RSHUDWH� LQ��7KLV� LQIRUPDWLRQ� LV� LPSRUWDQW� EHFDXVH�VDODU\� OHYHOV� DUH� GL൵HUHQW� LQ� GL൵HUHQW� FRXQWULHV� DQG� SDUWLFXODUO\� KLJKHU� LQ� SDUHQW�FRXQWU\�FRPSDUHG�WR�WKH�GHYHORSLQJ�FRXQWULHV��6HFRQG��WKH�86�3/&V�PHQWLRQHG�LQ�WKH�VWXG\�DUH�ELJ�ZLWK�VDOHV�UHYHQXH�PRUH�WKDQ����ELOOLRQ�ZKHUHDV�RQO\�WZR�1*2V�LQ�WKH�VWXG\�$PHULFDQ�5HG�&URVV�DQG�:RUOG�9LVLRQ�,QWHUQDWLRQDO�KDYH�WRWDO�UHYHQXH�PRUH�WKDQ����ELOOLRQ��7KH�VWDQGDUG�OLWHUDWXUH�DURXQG�WKH�ZRUOG�RQ�HPSOR\HH�VDODU\�DQG�EHQH¿WV�LV�WKDW�ELJ�¿UPV�SD\�PRUH�

2QH�SRVVLEOH� UHDVRQ� IRU� ORZHU�SD\� LQ�1*2V�FRPSDUHG� WR�3/&V� LQ� WKH�GHYHORSHG�FRXQWULHV�LV�WKDW�1*2�HPSOR\HHV�DQG�&(2V�DUH�UHODWLYHO\�JHQHUDOLVWV�ZKHUHDV�3/&�employees and CEOs are specialists. Generally NGOs raise and distribute funds DPRQJ�WKH�SRRU�ZKHUHDV�3/&V�UDLVH�IXQGV��SURGXFH�DQG�PDUNHW�SURGXFWV�DQG�VHUYLFHV�ZLWK�WHFKQLFDO�KDQGV��GLVWULEXWH�SUR¿WV�DPRQJ�VWDNHKROGHUV��DQG�UHLQYHVW�

7KH�PRVW�LPSRUWDQW�¿QGLQJ�RI�WKLV�VWXG\�LV�WKDW�WKHUH�LV�GHWDLOHG�GLVFORVXUH�UHJXODWLRQ�RQ� 1*2� H[HFXWLYH� UHPXQHUDWLRQ� LQ� WKH� GHYHORSHG� FRXQWULHV�� 7KHVH� GLVFORVXUH�UHJXODWLRQV�KDYH�EHHQ�IUDPHG�LQ�OLQH�ZLWK�WKRVH�RI�WKH�3/&V��7KHVH�UHJXODWLRQV�DUH�FRPSOHWHO\�DEVHQW�LQ�WKH�GHYHORSLQJ�FRXQWULHV�OLNH�%DQJODGHVK�DQG�,QGLD��7KHUH�DUH�KXJH�LPSOLFDWLRQV�RI�WKLV�¿QGLQJ��(PSOR\HH�VDODULHV�DQG�EHQH¿WV�DUH�RYHUZKHOPLQJO\�GHFLGHG�E\�PDUNHW�PHFKDQLVPV�ZKHUH�DEQRUPDO�SUHPLXP�LQ�WKHVH�EHQH¿WV�DUH�XQOLNHO\��But a CEO has some charisma and therefore market mechanism is relatively less likely WR�¿[�KLV�VDODU\�DQG�EHQH¿WV�DQG�WKHUHIRUH�KH�KDV�RSSRUWXQLWLHV�WR�WDNH�H[FHVV�RI�WKHVH�EHQH¿WV��7KHUH�FRPHV� WKH� UDWLRQDOH� IRU� WKH�QHFHVVLW\�RI�GHWDLOHG� UHJXODWLRQ�RQ� WKH�disclosure of his remuneration. This will open a new avenue for an information and a knowledge-based society where debates, assessments, and evaluations are facilitated. 7KH�DERYH�PDQDJHULDO�HQFURDFKPHQW�LQ�3/&V�KDG�KDSSHQHG�LQ�8.�DQG�86$�LQ�HDUO\�

Journal of Business Administration, Vol. 41, No. 1, June, 2020 (published in August, 2020)20

����V� �&KRZGKXU\�� ������� 'HWDLOHG� GLVFORVXUH� RI� H[HFXWLYH� UHPXQHUDWLRQ� LQ� 8.�DQG�86�3/&V�ZDV� D� UHVXOW� RI� WKLV� H[FHVV� �&DGEXU\�� ������ DQG� WKH� VDPH� GHWDLOHG�GLVFORVXUH�RI�H[HFXWLYH�UHPXQHUDWLRQ�IRU�1*2V�LV�UHJXODWHG�DQG�LV�LQ�SUDFWLFH�LQ�8.�DQG�86$��3HRSOH� DUH� QRZ� UDLVLQJ� YRLFH� LQ� WKHVH� FRXQWULHV� DJDLQVW� WKHVH� H[FHVVHV�DQG�WKLV�KDV�EHHQ�SRVVLEOH�EHFDXVH�RI�LQIRUPDWLRQ�DQG�NQRZOHGJH��,Q�WKH�GHYHORSLQJ�countries such an information and a knowledge base is overdue. Developing country chapters of international NGOs do not disclose CEO salaries because there are no local regulations about this. But a good citizen (particularly chairman and CEO) or an organization is not merely guided by regulation but also by self-regulation, self-discipline, knowledge-basis, transparency, responsibility and accountability, DQG�MXVWLFH�WR�WKH�VRFLHW\��7KLV�LV�SDUWLFXODUO\�LPSRUWDQW�LQ�RUJDQL]DWLRQV��QR�PDWWHU�ZKHWKHU�WKH\�DUH�3/&V�RU�JRYHUQPHQW�RU�1*2V��IXQGHG�E\�DQG�XVHG�IRU�WKH�SXEOLF�

This article dealt with the employee and managerial remuneration and disclosure ZKHUHDV�&DEHGR�HW�DO���������GHDOW�ZLWK�GLVFORVXUH�RI�SURMHFWV��7KHLU�ZRUN�H[SODLQHG�H൶FLHQF\�RI�SURMHFWV�ZKHUHDV�WKLV�ZRUN�IRFXVHG�PDWWHUV�ZKHUH�PDQDJHPHQW�KDV�WKHLU�RZQ�LQWHUHVW��IRU�H[DPSOH��GLVFORVXUH�RI�VDODU\�DQG�EHQH¿WV��WKHLU�FRPSRQHQWV��DQG�GL൵HUHQFH�EHWZHHQ�PDQDJHULDO� UHPXQHUDWLRQ�DQG� VWD൵� UHPXQHUDWLRQ��81�DJHQFLHV�SURYLGH�����WR�����WR�1*2V�IRU�VXSSRUW�FRVWV�LQFOXGLQJ�ZDJHV�DQG�VDODULHV��8QLWHG�1DWLRQV�� �������1*2$%�RI�%DQJODGHVK� DOORZV� ����ZKHUHDV�1*2V� LQ� WKH� VWXG\�VSHQW�����IRU�VDODULHV�DQG�EHQH¿WV�DORQH��8.�3/&V�DOVR�VSHQW������$JHQF\�WKHRU\�VXJJHVWV�WKDW�PDQDJHUV�UDWKHU�WKDQ�GRQRUV�DQG�RZQHUV�LQ�1*2V�DQG�3/&V�PDQDJH�and control their organizations and therefore have opportunities for pursuing self-interest. Therefore, more fruitful study would be covering private companies which are managed and controlled by the owners. The study sample includes only some LQWHUQDWLRQDO�DQG�QDWLRQDO�1*2V�EXW�H[FOXGHV�WRWDO�VFHQDULR�RI�1*2V��$JDLQ�WKHUH�FDQ�EH�VWXGLHV�PRUH�IRFXVHG�DQG�FRXQWU\�FDVH�VSHFL¿F�

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Cadbury A. (1992) 5HSRUW�RI�WKH�&RPPLWWHH�RQ�WKH�)LQDQFLDO�$VSHFWV�RI�&RUSRUDWH�Governance��*HH�DQG�&R��/WG���/RQGRQ�

Cheng Q. et al. (2017) 'R�+LJK�&(2�3D\�5DWLRV�'HVWUR\�)LUP�9DOXH? Research &ROOHFWLRQ�� 6FKRRO� RI� $FFRXQWDQF\�� ,QVWLWXWLRQDO� .QRZOHGJH� DW� 6LQJDSRUH�0DQDJHPHQW�8QLYHUVLW\�

Chowdhury D. (2019) ,QFHQWLYHV��&RQWURO�DQG�'HYHORSPHQW��*RYHUQDQFH�LQ�3ULYDWH�DQG�3XEOLF�6HFWRU�ZLWK�6SHFLDO�5HIHUHQFH�WR�%DQJODGHVK��'KDND�8QLYHUVLW\�

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Chowdhury D. (1994) $JHQF\� &RVWV� DQG� &RUSRUDWH� *RYHUQDQFH�� 3K'� 7KHVLV��/DQFDVWHU�8QLYHUVLW\��8.�

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