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

Charles Schwab launches 24-hour trading service for UK clients

Charles Schwab launches 24-hour trading service for UK clients

US blue-chip stocks available

Sorin Dojan
clock 13 February 2025 • 2 min read
Evelyn Partners reports 'all-time-high' AUM of £63bn

Evelyn Partners reports 'all-time-high' AUM of £63bn

CEO flags Budget impact on Q4

Jen Frost
clock 12 February 2025 • 2 min read
BP profits tank as CEO promises 'new direction'

BP profits tank as CEO promises 'new direction'

Amid stake taken by activist Elliott IM

Beth Brearley
clock 11 February 2025 • 2 min read
Trustpilot