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Gregory-Smith, Ian; Main, Brian (2016)
Publisher: Wiley
Languages: English
Types: Article
Subjects: Exectuive pay, labour market, participation, managerial power

Classified by OpenAIRE into

ACM Ref: ComputingMilieux_THECOMPUTINGPROFESSION
This paper examines the workings of the executive labour market in a panel of
UK listed companies. Directors are found to move jobs regularly - both within
companies and between companies. Consistent with an active labour market,
directors who are underpaid relative to their comparable peers are particularly
likely to leave for higher paying jobs in other companies. Those who move between
companies secure more favourable terms than those who move within their firm
- even when the move does not involve promotion. The evidence suggests that
market forces, while far from the only consideration, do need to be incorporated
into explanations of this sector of the labour market.
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