Farmer, Mark, Alexandrou, George and Archbold, Stuart (2010) New evidence of relative performance evaluation (RPE) in UK Chief Executive realised incentive compensation. (Working Paper) Rochester, U.S. : Social Science Electronic Publishing. 35 p.
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Abstract
In this paper we investigate the association between corporate performance and CEO pay using a panel of 204 large UK companies, between 2003 and 2007. The major and novel contribution of the paper is the focus on payouts from performance-stock option and performance-share plans. We demonstrate that it is crucial to distinguish between the different elements of executive pay and the different performance conditions that attach to those elements if we are to establish a comprehensive understanding of the pay-for-performance relationship. Using fixed-effects regressions, we provide new and convincing evidence that performance-realised short-term pay is determined relative to FTSE-350 market performance and performance-realised long-term pay is determined relative to FTSE-350 sector performance.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Research Area: | Accounting and finance |
| Faculty, School or Research Centre: | Faculty of Business and Law Faculty of Business and Law > Kingston Business School (Accounting and Finance) |
| Related URLs: | |
| Depositing User: | Mark Farmer |
| Date Deposited: | 06 Jan 2011 13:42 |
| Last Modified: | 22 Jan 2013 11:05 |
| URI: | http://eprints.kingston.ac.uk/id/eprint/16421 |
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