Business, Management and Accounting
4 years ago

Shareholders' Say on Pay Forces Boards to Cut CEO Compensation

RePEc: Research Papers in Economics
Boards' Response to Shareholders' Dissatisfaction: The Case of Shareholders' Say on Pay in the UK
Walid Alissa

Paper Summary

A new rule in the UK lets shareholders vote on how much executives get paid. Shareholders use this vote to show they are unhappy with high executive pay. Boards then lower excessive pay or remove the CEO. This shows that the rule helps control how much executives are paid.

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