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
dc.contributor.author	Ma, N https://orcid.org/0000-0002-0341-1003
dc.contributor.author	Scott, T
dc.date.accessioned	2020-10-02T06:53:48Z
dc.date.available	2020-10-02T06:53:48Z
dc.date.issued	2020-02-01
dc.identifier.citation	Australian Journal of Management, 2020, 45, (1), pp. 15-44
dc.identifier.issn	0312-8962
dc.identifier.issn	1327-2020
dc.identifier.uri	http://hdl.handle.net/10453/143027
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.
dc.language	en
dc.publisher	SAGE Publications
dc.relation.ispartof	Australian Journal of Management
dc.relation.isbasedon	10.1177/0312896219837999
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	15 Commerce, Management, Tourism and Services
dc.title	Evidence on compensation consultant fees and CEO pay
dc.type	Journal Article
utslib.citation.volume	45
utslib.for	15 Commerce, Management, Tourism and Services
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access	*
pubs.consider-herdc	true
dc.date.updated	2020-10-02T06:53:23Z
pubs.issue	1
pubs.publication-status	Published
pubs.volume	45
utslib.citation.issue	1

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/10453/143027