Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Corporate Governance and Executive Compensation
AU - Conyon, Martin
PY - 1997/7
Y1 - 1997/7
N2 - This paper examines the impact of corporategovernance innovations on top director compensation in a sample of 213 large UK companies between 1988 and 1993. An enabling factor in the analysis is access to survey data on recent corporategovernance changes in UK companies. The paper finds that director compensation and current shareholder returns are positively correlated. However, in line with other recent UK research the paper finds little evidence of a link between directors' pay (salary and bonus) and pre-dated shareholder returns. There is also some evidence that governance variables play a role in shaping top director pay. Companies which adopt remuneration committees are seen, in some circumstances, to have lower growth rates in top director compensation. Separating the roles of CEO and chairman, however, appears to play no part in shaping directors' pay.
AB - This paper examines the impact of corporategovernance innovations on top director compensation in a sample of 213 large UK companies between 1988 and 1993. An enabling factor in the analysis is access to survey data on recent corporategovernance changes in UK companies. The paper finds that director compensation and current shareholder returns are positively correlated. However, in line with other recent UK research the paper finds little evidence of a link between directors' pay (salary and bonus) and pre-dated shareholder returns. There is also some evidence that governance variables play a role in shaping top director pay. Companies which adopt remuneration committees are seen, in some circumstances, to have lower growth rates in top director compensation. Separating the roles of CEO and chairman, however, appears to play no part in shaping directors' pay.
KW - Director compensation
KW - Company performance
KW - Corporate governance
U2 - 10.1016/S0167-7187(96)01032-6
DO - 10.1016/S0167-7187(96)01032-6
M3 - Journal article
VL - 15
SP - 493
EP - 509
JO - International Journal of Industrial Organization
JF - International Journal of Industrial Organization
IS - 4
ER -