Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay

Morris, Tim and Fenton-O'Creevy, Mark (1996) Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay. The International Journal of Human Resource Management, 7 (3). pp. 708-720.

Abstract

This paper examines the attitudes of the top managers within one large financial services organization in the UK to fixed and variable components of their compensation package. The rationale for performance-related pay for senior managers is to align their interests with those of the shareholders, but little is known about the views of top managers on the effectiveness of such incentives. The results suggest that the design of effective bonus systems is not just a technical issue: perceptions of market fairness with respect to the compensation package and the clear communication of goals are important in getting senior managers to focus on shareholder interests.

Item Type: Article
Keywords: PRP, executive renumeration, agency theory, financial services
Subject(s): Professional services
Corporate reputation
Centre: Centre for Professional Firms
Oxford University Centre for Corporate Reputation
Date Deposited: 02 Nov 2011 15:03
Last Modified: 23 Oct 2015 14:05
URI: http://eureka.sbs.ox.ac.uk/id/eprint/1062

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