Board of Directors’ Remuneration, Employee Costs, and Layoffs: Evidence from Spain

Most of the empirical studies on board remuneration have focused finding explanatory performance measures. There are that analyze if compensation contracts directors reward managers in such a way they strive to maximize firm and shareholders’ wealth; however, there few social aspect corporate governance, or agent–employee principal–employee relationships. Thus, this study, our aim is test whether causal relationship between listed companies personnel policies companies, expressed through cost layoffs. For that, we used sample Spanish found two measures (return equity earnings per share market price) greater effect growth rate when layoffs occur. Additionally, sales revenue cash flow total assets subsequently influenced management.