Mj. Conyon et Sl. Peck, BOARD CONTROL, REMUNERATION COMMITTEES, AND TOP MANAGEMENT COMPENSATION, Academy of Management journal, 41(2), 1998, pp. 146-157
Using panel data on large, publicly traded U.K. companies gathered bet
ween 1991 and 1994, we examined the role of board control and remunera
tion committees in determining management compensation. Board monitori
ng, measured in terms of the proportion of nonexecutive directors on a
board and the presence of remuneration committees and CEO duality, ha
d only a limited effect on the level of top management pay. An importa
nt conclusion was that top management pay and corporate performance ar
e more aligned in companies with outsider-dominated boards and remuner
ation committees.