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| Tekijä: | Ozkan, N. |
| Otsikko: | CEO compensation and firm performance: An empirical investigation of UK panel data |
| Lehti: | European Financial Management
2011 : MAR, VOL. 17:2, p. 260-285 |
| Asiasana: | executive remuneration managers pay compensation performance management corporate governance panel data United Kingdom stocks |
| Vapaa asiasana: | bonus distribution |
| Kieli: | eng |
| Tiivistelmä: | This article examines the link between CEO pay and performance employing a unique, hand-collected panel data set of 390 UK non-financial firms from the FTSE All Share Index from 1999 to 2005. It is found the following: i) in comparison to the previous findings for U.S. CEOs, pay-performance (hereafter as: p-p.) elasticity (as: el-ty.) for U.K. CEOs seems to be lower, p-p. el-ty. for U.K. CEOs is 0.075 (0.095) for cash compensation (total direct compensation), indicating that a ten percentage increase in shareholder return corresponds to an increase of 0.75 percent (0.95 percent) in cash (total direct) compensation, ii) both the median share holdings and stock-based p-p. sensitivity (as: sen-ty.) are lower for U.K. CEOs based on comparing this paper's findings with the previous findings for U.S. CEOs. It is suggested that corporate governance reports in the U.K., such as the Greenbury Report (1995) proposing CEO compensation be more closely linked to performance, have not been totally effective and institutional ownership has a positive and significant influence on CEO p-p. sen-ty. of option grants (as: o-gts.) and longer CEO tenure is associated with lower p-p. sen-ty. of o-gts. suggesting the entrenchment effect of CEO tenure. |
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