Econometric modelling of UK executive compensation

Abstract

Looks briefly at theories underlying the correlation between company performance and executive compensation, develops a mathematical model and applies it to results which show a significant positive link between the highest paid director’s compensation and total shareholder returns, but not with earnings per share. Considers consistency with other research, notes the influence of company size on executive pay and calls for further research on this important issue of corporate governance.

Citation

Conyon, M.J., Peck, S.I. and Sadler, G. (2000), "Econometric modelling of UK executive compensation", Managerial Finance, Vol. 26 No. 9, pp. 3-20. https://doi.org/10.1108/03074350010766846