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Corporate Governance Reforms and Executive Compensation Determination: Evidence from the UK

  • Thompson, Steve

    (University of Leicester)

  • Sourafel Girma
  • Peter W Wright

This paper examines the effect that the ÔCadbury reformsÕ have had on the pay determination process of executives in the UK Our results suggest that, on average, the impact has been disappointing. The relationship between pay and performance remains weak and the link to firm size has, if anything, been strengthened. However, our results suggest considerable heterogeneity in the impact of the reforms, and for those firms above median employment the link between pay and profits appears to have strengthened.

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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 202.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:202
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