The Effect of the Say on Pay Law in UK

Abstract The debate about the say on pay initiative has lasted for a long time since the United Kingdom enacted it in 2002. This empirical study aims to investigate the effect of the say on pay and whether it is effective in UK from a new perspective on the say on pay law, which was issued by the...

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Main Author: DONG, ZHAOXI
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Online Access:https://eprints.nottingham.ac.uk/53986/
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author DONG, ZHAOXI
author_facet DONG, ZHAOXI
author_sort DONG, ZHAOXI
building Nottingham Research Data Repository
collection Online Access
description Abstract The debate about the say on pay initiative has lasted for a long time since the United Kingdom enacted it in 2002. This empirical study aims to investigate the effect of the say on pay and whether it is effective in UK from a new perspective on the say on pay law, which was issued by the UK in 2013, based on UK companies’ data sample from 2011 to 2015. The research uses the latest data in 2018 firstly and finds that the shareholder activism and CEO pay has a significantly positive relationship. However, there is no strong evidence that the say on pay law could curb the CEO compensation. Furthermore, this paper documents a remarkably negative link between the passage of the law and firm performance in the large companies from the five-year sample, suggesting that this law might be not suitable for big firms. Keywords: Shareholder activism, say on pay, CEO pay, firm performance, corporate governance
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spelling nottingham-539862022-04-21T13:40:47Z https://eprints.nottingham.ac.uk/53986/ The Effect of the Say on Pay Law in UK DONG, ZHAOXI Abstract The debate about the say on pay initiative has lasted for a long time since the United Kingdom enacted it in 2002. This empirical study aims to investigate the effect of the say on pay and whether it is effective in UK from a new perspective on the say on pay law, which was issued by the UK in 2013, based on UK companies’ data sample from 2011 to 2015. The research uses the latest data in 2018 firstly and finds that the shareholder activism and CEO pay has a significantly positive relationship. However, there is no strong evidence that the say on pay law could curb the CEO compensation. Furthermore, this paper documents a remarkably negative link between the passage of the law and firm performance in the large companies from the five-year sample, suggesting that this law might be not suitable for big firms. Keywords: Shareholder activism, say on pay, CEO pay, firm performance, corporate governance 2018-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/53986/1/ZHAOXI%20DONG-4294195.pdf DONG, ZHAOXI (2018) The Effect of the Say on Pay Law in UK. [Dissertation (University of Nottingham only)]
spellingShingle DONG, ZHAOXI
The Effect of the Say on Pay Law in UK
title The Effect of the Say on Pay Law in UK
title_full The Effect of the Say on Pay Law in UK
title_fullStr The Effect of the Say on Pay Law in UK
title_full_unstemmed The Effect of the Say on Pay Law in UK
title_short The Effect of the Say on Pay Law in UK
title_sort effect of the say on pay law in uk
url https://eprints.nottingham.ac.uk/53986/