Designing a comprehensive model for the compensation system in the National Southern Oilfields Company; An approach to improving corporate governance

Abstract

A fair and efficient compensation system is not merely a motivational tool, but a core pillar in realizing corporate governance through establishing transparency, accountability, and the alignment of interests. Given the inefficiencies of rigid civil service laws within the complex structure of the oil industry, this study aimed to design a comprehensive compensation model for the National Iranian South Oil Company (NISOC) with an approach to enhancing corporate governance. This qualitative study utilized thematic analysis, collecting data through semi-structured interviews with 19 managers and HR experts in the oil industry (selected via purposive sampling until theoretical saturation). The analytical structure of the findings revealed a multi-layered, dynamic model comprising 4 axial codes, 10 categories, and 65 primary codes. The model demonstrates that “fairness and transparency,” acting as the core, directly fuels the pillars of corporate governance (trust, equity, and accountability). This core interacts with the second level, “employee development and performance,” ensuring the strategic alignment of individual and organizational goals, supported by the third level, “benefits and facilities.” The model’s adaptability to external factors (global standards and economic conditions) ensures systemic resilience. The theoretical and practical innovation of this study lies in transitioning from traditional payment approaches to an integrated system where compensation acts as the primary lever for implementing corporate governance. By resolving current structural and legal conflicts, this model can reduce the turnover of elite personnel and significantly enhance productivity and transparency in large oil companies