A Proposed Framework for the Design of Incentives Based on the Stock in light of the Impact of Islamic Principles on Governance

Nesreen Mohamed Fathy Youssife


This researching paper focus on how to formulate  an Islamic governance principles and mechanisms in order for designing a Stock_Based_Incentives  according to this suggested principles and mechanisms of Islamic governance for "Islamic banks" as one of important sectors in many countries, currently governance model does not consist with Islamic sharia or rules for some mechanisms and principles such as concentrating only on board members, neglecting of human resources , lack of considerations for collective work, in addition for that, this paper also discuss to any extend do the currently implied stocks_based_incentives is in tune with Islamic sharia , I found  that there are some matters Incompatible with sharia, incentives derived from stocks care only by the earned amount regardless spent time (or hours) , moreover,it focuses primarily on senior management while sharia urged the justice with all personnel, with retension some of  currently implied governance mechanisms…a relevant principles and mechanisms for Islamic governance have been suggested in third section and under it the paper suggested certain steps that might lead to more fairly incentives fashioning.


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