Corporate performance and the influence of human capital characteristics on executive compensation in the UK

Abstract

The issue of executive pay has been the subject of intense debate in recent years. Discusses the factors determining executive pay using 1995 and 1996 data for a sample of 125 of the largest UK companies. Combines company performance and human capital characteristics as determinants of executive pay. Confirms the importance of company size as a strong influence on executive pay. Shows that profitability is a weak determinant of pay. Although human capital characteristics affect executive pay, the influence is not strong. When industry differences are taken into account, the impact of human capital diminishes further.

Citation

Laing, D. and Weir, C. (1999), "Corporate performance and the influence of human capital characteristics on executive compensation in the UK", Personnel Review, Vol. 28 No. 1/2, pp. 28-40. https://doi.org/10.1108/00483489910248974