DOES THE MARKET FOR TOP EXECUTIVES WORK - CEO PAY AND TURNOVER IN SMALL UK COMPANIES

This paper presents the results of our investigation into the operatio n of the managerial labour market in small and medium sized manufactur ing companies. Using a sample of some 40 or so companies we study the sensitivity of managerial pay and tenure to company performance. Manag erial pay in this type of firms is much lower than the six digit figur es quoted for large public companies and CEO turnover is much higher t han we expected. We find some evidence to suggest that pay in small co mpanies is sensitive to sales growth and that CEO tenure in public com panies responds to the growth in sales.