Journal ArticleDOI
Board Control, Remuneration Committees, and Top Management Compensation
Martin J. Conyon,Simon Peck +1 more
Reads0
Chats0
TLDR
In this article, the role and impact of corporate governance mechanisms and the structure of boards of directors to explain variations in top management pay in the UK was examined. But, they found that boardroom control and vigilance has a limited effect in shaping top management compensation, neither the proportion of outside directors, nor CEO duality being related to management compensation.Abstract:
Assesses the relationship between boards of directors, compensation committees and top management pay, focusing on the role and impact of corporate governance mechanisms and the structure of boards of directors to explain variations in top management pay in the UK. Uses data from the 'Financial Times' top 100 companies to examine the relationship between: top management compensation, non-executive directors and corporate performance; top management compensation, existence of compensation committees and proportion of non-executives on these committees; and the relationship between top management compensation and Chief Executive Officer (CEO) duality. Finds that, in general, boardroom control and vigilance has a limited effect in shaping top management compensation, neither the proportion of outside directors, nor CEO duality being related to management compensation; and companies adopting compensation committees have higher levels of top management pay. Demonstrates that the direct effect of boardroom control variables on the level of management compensation is minimal.read more
Citations
More filters
Journal ArticleDOI
Boards of Directors and Firm Performance: Integrating Agency and Resource Dependence Perspectives
Amy J. Hillman,Thomas Dalziel +1 more
TL;DR: The authors argue that board capital affects both board monitoring and the provision of resources and that board incentives moderate these relationships, arguing that board's incentives moderate the relationship between monitoring and resource dependence.
Journal ArticleDOI
Socioemotional Wealth and Corporate Responses to Institutional Pressures: Do Family-Controlled Firms Pollute Less?:
TL;DR: In this article, the authors compared the environmental performance of family and non-family public corporations between 1998 and 2002, using a sample of 194 U.S. firms required to report their emissions.
Journal ArticleDOI
How Much Does Performance Matter? A Meta-Analysis of CEO Pay Studies
TL;DR: In this article, a meta-analytic review of the empirical literature on the determinants of CEO pay was conducted, and the hypothesized relationships between firm size, performance, and CEO pay were tested.
Board composition and corporate performance: how the Australian experience informs contrasting theories of corporate governance
TL;DR: In this article, the authors examined the relationship between board demographics and corporate performance in 348 of Australia's largest publicly listed companies and described the attributes of these firms and their boards, finding that after controlling for firm size, board size is positively correlated with firm value.
Journal ArticleDOI
Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance
TL;DR: In this article, the authors examined the relationship between board demographics and corporate performance in 348 of Australia's largest publicly listed companies and described the attributes of these firms and their boards, finding that board size is positively correlated with firm value.
References
More filters
Journal ArticleDOI
Separation of ownership and control
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
Journal ArticleDOI
Agency Theory: An Assessment and Review
TL;DR: In this article, the authors review agency theory, its contributions to organization theory, and the extant empirical work and develop testable propositions and conclude that agency theory offers unique insight into information systems, outcome uncertainty, incentives, and risk.
Book
Econometric Analysis of Panel Data
TL;DR: In this article, the authors proposed a two-way error component regression model for estimating the likelihood of a particular item in a set of data points in a single-dimensional graph.
Journal ArticleDOI
Management Ownership and Market Valuation: An Empirical Analysis
TL;DR: This article investigated the relationship between management ownership and market valuation of the firm, as measured by Tobin's Q. In a 1980 cross-section of 371 Fortune 500 firms, they found evidence of a significant nonmonotonic relationship.
Journal ArticleDOI
Higher market valuation of companies with a small board of directors
TL;DR: In this paper, the authors present evidence consistent with theories that small boards of directors are more effective, using Tobin's Q as an approximation of market valuation, and find an inverse association between board size and firm value in a sample of 452 large U.S. industrial corporations.