London School of Economics' Alexander Pepper: The debate around CEO pay rise

'Two rival academic theories'

clock • 4 min read

The leaders of the London Stock Exchange want to have a constructive discussion about the UK's approach to executive compensation.

They believe that UK companies must pay more to compete with US businesses. The counterargument is that the London stock market's unfavourable international competitive position is a consequence of political uncertainty, a confused approach to international trade, a shortage of capital, and the absence of a coherent industrial policy rather than a failure to remunerate top executives at US pay levels. FTSE 100 CEO pay stretches to all-time high So, who is right? Two rival academic theories try to explain the sharp rise in executive compensation in the last forty years. The fi...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

FTSE 100 dividend forecasts fall as 2018 peak moves further out of reach

FTSE 100 dividend forecasts fall as 2018 peak moves further out of reach

AJ Bell Dividend Dashboard

Sorin Dojan
clock 20 December 2024 • 4 min read
WealthTek boss John Dance charged with £64m fraud and money laundering

WealthTek boss John Dance charged with £64m fraud and money laundering

‘One of the most serious and largest frauds’

Jenna Brown
clock 19 December 2024 • 2 min read
Ukraine war has made City spending on defence 'essential' as opposed to 'contentious'

Ukraine war has made City spending on defence 'essential' as opposed to 'contentious'

Defence sector ‘vital to the economy’

Sorin Dojan
clock 18 December 2024 • 5 min read
Trustpilot