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Long Term Incentive Plans, Executive Pay and UK Company Performance


  • Trevor Buck


In agency theory, the remuneration packages of executive directors in large companies are seen as an attempt to give them a pattern of rewards that aligns their interests more closely with shareholders as a whole. The sensitivity of total executive rewards to share price performance has become the conventional yardstick for judgements concerning whether reward packages do indeed serve shareholders' interests or executives themselves. Copyright 2003 Blackwell Publishing Ltd..

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  • Trevor Buck, 2003. "Long Term Incentive Plans, Executive Pay and UK Company Performance," Journal of Management Studies, Wiley Blackwell, vol. 40(7), pages 1709-1727, November.
  • Handle: RePEc:bla:jomstd:v:40:y:2003:i:7:p:1709-1727

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    References listed on IDEAS

    1. Barbara Townley, 2004. "Managerial Technologies, Ethics and Managing," Journal of Management Studies, Wiley Blackwell, vol. 41(3), pages 425-445, May.
    2. Janet Harvey, 2002. "The Determinants Of Research Group Performance: Towards Mode 2?," Journal of Management Studies, Wiley Blackwell, vol. 39(6), pages 747-774, September.
    3. David Guest & Zella King, 2004. "Power, Innovation and Problem-Solving: The Personnel Managers' Three Steps to Heaven?," Journal of Management Studies, Wiley Blackwell, vol. 41(3), pages 401-423, May.
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    Cited by:

    1. Bradley Lail & Jason MacGregor & Martin Stuebs & Timothy Thomasson, 2015. "The Influence of Regulatory Approach on Tone at the Top," Journal of Business Ethics, Springer, vol. 126(1), pages 25-37, January.
    2. Matousek, Roman & Tzeremes, Nickolaos G., 2016. "CEO compensation and bank efficiency: An application of conditional nonparametric frontiers," European Journal of Operational Research, Elsevier, vol. 251(1), pages 264-273.
    3. Pepper, Alexander & Gore, Julie, 2014. "The economic psychology of incentives: An international study of top managers," Journal of World Business, Elsevier, vol. 49(3), pages 350-361.
    4. Yoshikawa, Toru & Rasheed, Abdul A. & Del Brio, Esther B., 2010. "The impact of firm strategy and foreign ownership on executive bonus compensation in Japanese firms," Journal of Business Research, Elsevier, vol. 63(11), pages 1254-1260, November.
    5. Yu Flora Kuang, 2008. "Performance-vested Stock Options and Earnings Management," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(9-10), pages 1049-1078.
    6. Pepper, Alexander & Gore, Julie, 2014. "The economic psychology of incentives: an international study of top managers," LSE Research Online Documents on Economics 51655, London School of Economics and Political Science, LSE Library.
    7. Alcindo Mendes & Rogério João Lunkes & Leonardo Flach & Silvana Dalmutt Kruger, 2017. "The influence of remuneration on the behavior of hospital employees in Brazil," Contaduría y Administración, Accounting and Management, vol. 62(1), pages 207-221, Enero-Mar.
    8. Kuang, Y. & Qin, B., 2006. "Performance-vested Stock Options and Pay-Performance Sensitivity," Discussion Paper 2006-123, Tilburg University, Center for Economic Research.
    9. repec:bla:stratm:v:38:y:2017:i:9:p:1875-1894 is not listed on IDEAS
    10. Peter Hahn & Meziane Lasfer, 2011. "The compensation of non-executive directors: rationale, form, and findings," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(4), pages 589-601, November.
    11. Voulgaris, Georgios & Stathopoulos, Konstantinos & Walker, Martin, 2014. "IFRS and the Use of Accounting-Based Performance Measures in Executive Pay," The International Journal of Accounting, Elsevier, vol. 49(4), pages 479-514.
    12. Duffhues, Pieter & Kabir, Rezaul, 2008. "Is the pay-performance relationship always positive: Evidence from the Netherlands," Journal of Multinational Financial Management, Elsevier, vol. 18(1), pages 45-60, February.
    13. Taylan Mavruk & Evert Carlsson, 2015. "How long is a long-term-firm investment in the presence of governance mechanisms?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 117-149, June.

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