TY - JOUR
T1 - Excess executive compensation and corporate governance in the United Kingdom and Spain
T2 - A comparative analysis
AU - Sánchez-Marín, Gregorio
AU - Lucas-Pérez, María Encarnación
AU - Baixauli-Soler, Samuel
AU - Main, Brian G. M.
AU - Mínguez-Vera, Antonio
N1 - Funding Information:
This study was financially supported by the Ministry of Science and Innovation (Project ECO2017‐84209‐P) of Spain.
Publisher Copyright:
© 2022 The Authors. Managerial and Decision Economics published by John Wiley & Sons Ltd.
PY - 2022/10
Y1 - 2022/10
N2 - Literature on executive compensation has relatively neglected the impact of institutional governance contexts. Regarding filling this gap, this study examines the influence of governance mechanisms on excess executive compensation comparing a set of listed UK and Spanish firms on an 8-year panel data. Findings indicate that Spanish firms are characterized by higher excess executive compensation than UK firms because of the less effectiveness of ownership structure and board of directors. Differences in concentration and structure of ownership as well as in composition and size of boards result in more aligned executive compensation design in the UK firms.
AB - Literature on executive compensation has relatively neglected the impact of institutional governance contexts. Regarding filling this gap, this study examines the influence of governance mechanisms on excess executive compensation comparing a set of listed UK and Spanish firms on an 8-year panel data. Findings indicate that Spanish firms are characterized by higher excess executive compensation than UK firms because of the less effectiveness of ownership structure and board of directors. Differences in concentration and structure of ownership as well as in composition and size of boards result in more aligned executive compensation design in the UK firms.
KW - executive compensation
KW - corporate governance
U2 - 10.1002/mde.3564
DO - 10.1002/mde.3564
M3 - Article
SN - 0143-6570
VL - 43
SP - 2817
EP - 2837
JO - Managerial and Decision Economics
JF - Managerial and Decision Economics
IS - 7
ER -