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Does the Market for Top Executives Work? CEO Pay and Turnover in Small UK Companies

Research output: Contribution to Journal/MagazineJournal articlepeer-review

<mark>Journal publication date</mark>09/1998
<mark>Journal</mark>Small Business Economics
Issue number2
Number of pages10
Pages (from-to)145-154
Publication StatusPublished
<mark>Original language</mark>English


This paper presents the results of our investigation into the operation of the managerial labour market in small and medium sized manufacturing companies. Using a sample of some 40 or so companies we study the sensitivity of managerial pay and tenure to company performance. Managerial pay in this type of firms is much lower than the six digit figures quoted for large public companies and CEO turnover is much higher than we expected. We find some evidence to suggest that pay in small companies is sensitive to sales growth and that CEO tenure in public companies responds to the growth in sales.