While executive pay may be perceived by many to be about scale, new research finds that less may well be more; indeed, the best-performing companies have been found to pay their CEOs relatively less than others.
Vlerick Business School has developed a “rich” database, fed every year with data on all aspects of CEO remuneration (for example, remuneration level, remuneration structures, typology of long-term incentives, and key performance indicators) in listed firms in the United Kingdom, Germany, France, the Netherlands, Belgium and Sweden.
In the last edition, we were especially interested to find out which strategies underly executive remuneration in the best-performing firms (with sustained performance being operationalised as a significantly higher return on assets over a seven-year timeframe, compared with companies in the same industry).
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The UK's Corporate Governance Code has remained largely unchanged since its introduction in 1992. Chris Hodge examines how we can realign its purpose to match today's expectations of what it ought to achieve.
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