Compensation Consultants and CEO Pay

Research in International Business and Finance 32 (2014) 172–189.

35 Pages Posted: 22 Jul 2010 Last revised: 3 Jun 2020

See all articles by Rezaul Kabir

Rezaul Kabir

University of Twente

Marizah Minhat

Edinburgh Napier University; Edinburgh Napier University

Date Written: April 1, 2014


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 and Minhat, Marizah, Compensation Consultants and CEO Pay (April 1, 2014). Research in International Business and Finance 32 (2014) 172–189., Available at SSRN: or

Rezaul Kabir (Contact Author)

University of Twente ( email )

Faculty of Behavioral, Management & Social Science
P. O. Box 217
Enschede, 7500 AE
+31 53 489 5355 (Phone)

HOME PAGE: http://

Marizah Minhat

Edinburgh Napier University

School of Accounting, Economics and Statistics
Craiglockhart Campus
Edinburgh, Scotland EH14 1DJ
United Kingdom

Edinburgh Napier University ( email )

Edinburgh, EH10 5LG
United States

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