Compensation Consultants and CEO Pay

35 Pages Posted: 22 Jul 2010 Last revised: 14 May 2014

See all articles by Rezaul Kabir

Rezaul Kabir

University of Twente - Department of Finance and Accounting

Marizah Minhat

Edinburgh Napier University

Date Written: April 1, 2014

Abstract

This paper (forthcoming in Research in International Business and Finance) examines the practice of employing multiple compensation consultants. Examining data of a sample of UK companies over the period 2003–2006 we find that CEOs receive higher equity-based pay when firms employ more than one compensation consultant. An increase in the number of compensation consultants is also associated with an increase in CEO equity-based pay, whereas no decline in CEO pay takes place when firms reduce the number of pay consultants. We also observe that the market shares of compensation consultant are positively related to CEO equity-based pay.

Keywords: Executive Compensation, CEO Pay, Compensation Consultant, Corporate Governance

JEL Classification: G34, J33, M52

Suggested Citation

Kabir, Rezaul and Minhat, Marizah, Compensation Consultants and CEO Pay (April 1, 2014). Available at SSRN: https://ssrn.com/abstract=1646926 or http://dx.doi.org/10.2139/ssrn.1646926

Rezaul Kabir (Contact Author)

University of Twente - Department of Finance and Accounting ( email )

Faculty of Behavioral, Management & Social Science
P. O. Box 217
Enschede, 7500 AE
Netherlands
+31 53 489 4512 (Phone)
+31 53 489 2159 (Fax)

HOME PAGE: http://https://people.utwente.nl/r.kabir

Marizah Minhat

Edinburgh Napier University ( email )

Edinburgh, EH10 5LG
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
283
Abstract Views
2,483
rank
106,027
PlumX Metrics