 Board structure and executive pay: evidence from the UKPaul Guest () Cambridge Journal of Economics, 2010, vol. 34, issue 6, 1075-1096 Abstract: We examine the impact of board structure on executive pay for 1,880 UK public firms over the period 1983--2002, using panel data analysis. First, the proportion of non-executive directors tends to decrease the rate of increase in executive pay whereas board size tends to increase it. Second, the proportion of non-executives strengthens the relation between the rate of increase in executive pay and changes in performance. In particular, although for firms in general the pay--performance link is much weaker when performance is poor, a higher proportion of non-executives strengthens this link considerably. Finally, firms that increase the number of non-executives in order to comply with the Cadbury Code of 1992, experience both a decline in the rate of increase in executive pay and an increase in pay--performance sensitivity. Copyright The Author 2009. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press. Date: 2010 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:cambje:v:34:y:2010:i:6:p:1075-1096 Ordering information: This journal article can be ordered from Access Statistics for this article Cambridge Journal of Economics is currently edited by Jacqui Lagrue More articles in Cambridge Journal of Economics from Cambridge Political Economy Society Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. |
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