Remuneration Committees and CEO Pay in the UK Privatized Water Industry

Posted: 29 Feb 2008

See all articles by Stuart Ogden

Stuart Ogden

University of Sheffield - School of Management

Robert Watson

Instituto de Empresa

Date Written: JANUARY 2004

Abstract

This paper examines the operation of remuneration committees in the privatized water industry through interviews with members of the remuneration committees and an empirical comparative analysis of water company and other UK CEO pay awards over the period 1991-1999. The claims made in interview that the committees work effectively, and that despite criticisms to the contrary, their CEOs are relatively underpaid, appear to be borne out by the empirical analysis. The empirical analysis also indicates that the water company remuneration committees have resisted upward drift in CEO pay levels, and that water company CEO pay awards are significantly related to firm performance.

Keywords: CEO pay, incentives, regulation, firm performance

Suggested Citation

Ogden, Stuart and Watson, Robert, Remuneration Committees and CEO Pay in the UK Privatized Water Industry (JANUARY 2004). Socio-Economic Review, Vol. 2, pp. 33-63, 2004, Available at SSRN: https://ssrn.com/abstract=811431

Stuart Ogden (Contact Author)

University of Sheffield - School of Management ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom
0114 22 23449 (Phone)
0114 222 3348 (Fax)

HOME PAGE: http://www.shef.ac.uk/management/staff/profile/ogden.html

Robert Watson

Instituto de Empresa ( email )

Serrano 99
Madrid, 28006
Spain

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