The present study examines both topics simultaneously and endeavours to draw from this unified view a synthesis that can throw light on future governance reforms.
It further reveals that CEO pay is less performance-related than other directors and provides evidence that total cash is the pay element most strongly associated to performance.
Taken together, the findings suggest that the UK’s governance system might be fragmented and incoherent, and that the flexibility offered by the ‘comply or explain’ approach is not fully exploited.
Overall the current study utilises a mixed methods approach via a combination both quantitative and qualitative modes of analysis – an approach which is relatively rare in the discipline of research into corporate governance and related issues.
The outcomes from the empirical work show evidence of the presence of dual positive associations between executive compensation and company performance.