CEO Emoluments Determination of Non Governmental Organisations (NGO) in Melaka: A Concept Paper

¹ Faculty of Accountancy, Universiti Teknologi MARA Melaka
² Faculty of Business & Management, Universiti Teknologi MARA Melaka

^* Corresponding author’s email: hmasita@melaka.uitm.edu.my

Abstract

Non-governmental organisations (NGOs) are formed by mutual members in conducting activities to enhance social welfare of its members and public. The issue of governance of NGO arises when such social welfare fail to be achieved. Principal-agent theory explains that agent (elected CEO or key committees) is responsible to carry out NGO activities aligned with principal’s interest (which described in NGO missions and goals). If CEO or key committees are being paid to govern NGO, emolument is primarily perceived as a signal to level of governance of NGO. This study objectively to determine factors that influence the decision of emoluments paid to elected CEO or key committees. Subsequently, this study is to analyze the level of governance of NGO. NGO registered in Melaka will be selected from Registrar of Societies (ROS) in Melaka. Therefore, data for this study will be collected using data from ROS Melaka. 594 registered NGO that located in Melaka will be contacted and interviewed to complete structured questionnaire. Data collected will be analyzed using SPSS software to determine the factors that influences emolument decision. Subsequently, data will be analyzed to determine the level of governance of NGOs in Malaysia, which related to emoluments decision making.