Conversion, Performance and Executive Compensation in UK Building Societies

10 Pages Posted: 7 Aug 2004

See all articles by Radha K. Shiwakoti

Radha K. Shiwakoti

University of Kent - Canterbury Business School

Kevin Keasey

University of Leeds - Division of Accounting and Finance

John Kevin Ashton

Bangor Business School; University of East Anglia (UEA)

Abstract

Interest in the causes of the conversion of building societies from a mutual to a proprietary form of ownership has grown in recent years. In this study, one of a number of possible explanations underlying the conversion of building societies is examined; namely, the potential for directors to enhance their remuneration once plc status has been achieved. Empirical tests indicate that the large increases in remuneration for converted building society boards and chief executives are not justified in terms of company performance and may, indeed, have been a factor driving the conversion of building societies.

Suggested Citation

Shiwakoti, Radha K. and Keasey, Kevin and Ashton, John Kevin, Conversion, Performance and Executive Compensation in UK Building Societies. Available at SSRN: https://ssrn.com/abstract=557318

Radha K. Shiwakoti (Contact Author)

University of Kent - Canterbury Business School ( email )

Canterbury, Kent CT2 7NZ
United Kingdom

Kevin Keasey

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom
+44 (0)113 343 2618 (Phone)

John Kevin Ashton

Bangor Business School ( email )

Bangor Business School
College Road
Gwynedd LL57 2DG, Wales LL57 2DG
United Kingdom

University of East Anglia (UEA) ( email )

Norwich Research Park
Norwich, Norfolk NR4 7TJ
United Kingdom

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