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

17 Pages Posted: 3 Jan 2007

See all articles by Sourafel Girma

Sourafel Girma

Nottingham University Business School

Steve Thompson

Nottingham University Business School (NUBS)

Peter W Wright

University of Sheffield - Department of Economics

Abstract

This paper examines the effect that the Cadbury reforms 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 been reinforced.

Suggested Citation

Girma, Sourafel and Thompson, R.S. and Wright, Peter W, Corporate Governance Reforms and Executive Compensation Determination: Evidence from the UK. Manchester School, Vol. 75, No. 1, pp. 65-81, January 2007. Available at SSRN: https://ssrn.com/abstract=954826 or http://dx.doi.org/10.1111/j.1467-9957.2007.01003.x

Sourafel Girma (Contact Author)

Nottingham University Business School ( email )

Jubilee Campus
Nottingham, NG8 1BB
United Kingdom
+44 0 115 8466656 (Phone)

HOME PAGE: http://www.nottingham.ac.uk/~lizsmg/

R.S. Thompson

Nottingham University Business School (NUBS) ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

HOME PAGE: http://www.nottingham.ac.uk/cgi-bin/directory_lookup.cgi?surname=Thompson&initials=&number=&departme

Peter W Wright

University of Sheffield - Department of Economics ( email )

9 Mappin Street
Sheffield, S1 4DT
UNITED KINGDOM

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