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 - The Governance of Directors Pay: Evidence from UK Companies
AU - Benito, A
AU - Conyon, Martin
PY - 1999
Y1 - 1999
N2 - We examine the determination of directors'' compensation in UK quoted companies between 1985 and 1994. The primary innovation contained in the paper is the focus on the governance mechanisms that determine pay outcomes. Our results indicate that: (i) directors'' compensation is positively related to pre-dated shareholder returns and company size with the quantitative effect of the latter dominating the former. (ii) We find that the pay-for-performance link has become quantitatively stronger over our sample period. (iii) There has been positive adherence to the principles of the Cadbury report, but these variables play little statistical role in shaping the direct compensation of top directors.
AB - We examine the determination of directors'' compensation in UK quoted companies between 1985 and 1994. The primary innovation contained in the paper is the focus on the governance mechanisms that determine pay outcomes. Our results indicate that: (i) directors'' compensation is positively related to pre-dated shareholder returns and company size with the quantitative effect of the latter dominating the former. (ii) We find that the pay-for-performance link has become quantitatively stronger over our sample period. (iii) There has been positive adherence to the principles of the Cadbury report, but these variables play little statistical role in shaping the direct compensation of top directors.
U2 - 10.1023/A:1009995710541
DO - 10.1023/A:1009995710541
M3 - Journal article
VL - 3
SP - 117
EP - 136
JO - Journal of Management and Governance
JF - Journal of Management and Governance
SN - 1385-3457
IS - 2
ER -