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Remuneration committees, shareholder dissent on CEO pay and the CEO pay–performance link

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  • Pamela Kent
  • Kim Kercher
  • James Routledge

Abstract

We provide evidence on whether the adoption of the full Australian Securities Exchange recommendations for remuneration committee formation and structure are associated with a lower shareholder dissenting vote or a stronger CEO pay–performance link. We find some evidence that a minority†and majority†independent remuneration committee and a committee size of at least the recommended three members are associated with lower shareholder dissent. Companies with an independent committee have a stronger CEO pay–performance link. In addition, a majority†independent committee strengthens the link between performance and growth in CEO pay.

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  • Pamela Kent & Kim Kercher & James Routledge, 2018. "Remuneration committees, shareholder dissent on CEO pay and the CEO pay–performance link," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 58(2), pages 445-475, June.
    • Handle: RePEc:bla:acctfi:v:58:y:2018:i:2:p:445-475
    DOI: 10.1111/acfi.12222
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