Changes in Executive Remuneration after Technology Bubble

Suwina Cheng ()
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Suwina Cheng: Lingnan University

No 4607140, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The study examines top executive Remuneration in UK high-technology firms in an attempt to identify and understand any changes in the structure of the pay mechanism evident after the global technology market crisis at the end of the twentieth century. The results show that the relation between executive pay and market performance has weakened and that the fixed components in the pay package in those companies have increased post-crisis. These changes have likely served to compensate executives for the increased risk associated with equity-based compensation rather than to redress any perceived problems with executive incentives pre-crisis. Moreover, we also confirm a significant and negative association between executive pay and block shareholdings after the market adjustment. These findings suggest that shareholders strengthened their role of monitoring executive pay in the wake of this exogenous economic shock.

Keywords: Corporate governance; CEO compensation; Financial crisis; High-technology firms (search for similar items in EconPapers)
JEL-codes: G30 M12 (search for similar items in EconPapers)
Pages: 1 page
Date: 2017-07
New Economics Papers: this item is included in nep-cfn, nep-eur and nep-hrm
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Published in Proceedings of the Proceedings of the 31st International Academic Conference, London, Jul 2017, pages 78-78

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:4607140

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