Determinants of Remuneration Committee Chairman’s Pay: Evidence from the UK

Fadi Shehab Shiyyab ()
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Fadi Shehab Shiyyab: Department of Accounting, Business School, The Hashemite University, P.O. Box 330127, Zarqa 13133, Jordan

IJFS, 2024, vol. 12, issue 2, 1-21

Abstract: This study investigates the association between the compensation of Remuneration Committee Chairpersons (RCCs) and their characteristics. Utilizing data from firms listed on the UK FTSE350 index between 2010 and 2020, the research unveils that RCC remuneration is influenced by factors such as observable efforts, time commitment, and accumulated experience. Notably, the analysis reveals a substantial gender gap in RCCs’ pay. The results suggest that the contractual pricing of individual director-level attributes plays a role in explaining disparities in compensation for roles with similar responsibilities. Furthermore, the study sheds light on the intricate process of determining compensation within the directorial hierarchy. It delves into how differences in pay among individuals occupying similar positions across various companies can be elucidated by the distinct attributes and qualifications of each individual. Ultimately, the findings advocate for a nuanced examination of directorial roles, highlighting the necessity of distinguishing between different director roles rather than treating them as a homogeneous entity.

Keywords: corporate governance; non-executive directors; remuneration committee; remuneration committee chairperson; director individual characteristics; directors-level (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2024
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