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Conversion, Performance and Executive Compensation in UK Building Societies
Author(s) -
Shiwakoti Radha K.,
Ashton John K.,
Keasey Kevin
Publication year - 2004
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/j.1467-8683.2004.00377.x
Subject(s) - remuneration , compensation (psychology) , accounting , conversion factor , executive compensation , business , finance , corporate governance , psychology , physics , quantum mechanics , psychoanalysis
Interest in the causes of the conversion of building societies from a mutual to a proprietary form of ownership has grown in recent years. In this study, one of a number of possible explanations underlying the conversion of building societies is examined; namely, the potential for directors to enhance their remuneration once plc status has been achieved. Empirical tests indicate that the large increases in remuneration for converted building society boards and chief executives are not justified in terms of company performance and may, indeed, have been a factor driving the conversion of building societies.