Evidence on compensation consultant fees and CEO pay

Grosse, M; Ma, N; Scott, T

Evidence on compensation consultant fees and CEO pay

Grosse, M

Ma, N

Scott, T

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Publisher:: SAGE Publications
Publication Type:: Journal Article
Citation:: Australian Journal of Management, 2020, 45 (1), pp. 15 - 44
Issue Date:: 2020-02-01

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Field	Value	Language
dc.contributor.author	Grosse, M https://orcid.org/0000-0001-9156-4351	en_US
dc.contributor.author	Ma, N https://orcid.org/0000-0002-0341-1003	en_US
dc.contributor.author	Scott, T	en_US
dc.date.issued	2020-02-01	en_US
dc.identifier.citation	Australian Journal of Management, 2020, 45 (1), pp. 15 - 44	en_US
dc.identifier.issn	0312-8962	en_US
dc.identifier.uri	http://hdl.handle.net/10453/134009
dc.description.abstract	Regulators and previous research have expressed concern about the effect of compensation consultants on CEO pay. We use the Australian setting, where fees for both compensation and other consulting services supplied by compensation consultants are mandated disclosures for all firms, to provide evidence on the role of compensation consultants on CEO pay. We find that the use of compensation consultants or remuneration advisers, fees for compensation services and positive residual compensation service fees are associated with higher CEO pay. In contrast, both the provision and the proportion of fees from other services provided by compensation consultants are not. Furthermore, these positive associations are not observed when a Big 4 accounting firm is the compensation consultant.	en_US
dc.publisher	SAGE Publications	en_US
dc.relation.ispartof	Australian Journal of Management	en_US
dc.relation.isbasedon	10.1177/0312896219837999	en_US
dc.title	Evidence on compensation consultant fees and CEO pay	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	45	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	in_progress
pubs.consider-herdc	true	en_US
pubs.issue	1	en_US
pubs.publication-status	Published	en_US
pubs.volume	45	en_US

Abstract:

Regulators and previous research have expressed concern about the effect of compensation consultants on CEO pay. We use the Australian setting, where fees for both compensation and other consulting services supplied by compensation consultants are mandated disclosures for all firms, to provide evidence on the role of compensation consultants on CEO pay. We find that the use of compensation consultants or remuneration advisers, fees for compensation services and positive residual compensation service fees are associated with higher CEO pay. In contrast, both the provision and the proportion of fees from other services provided by compensation consultants are not. Furthermore, these positive associations are not observed when a Big 4 accounting firm is the compensation consultant.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/134009