Economics Research Community Seminar

Title: Executive Compensation in the UK: A Structural Estimation Approach
Date: 28 September 2022
Time: 13:00-14:00
Location: NUBS 4.06

Guest Speaker: Ian Gregory-Smith, Reader, Newcastle University Business School

If you would like to attend, please register using the following link: https://forms.office.com/r/ir9HfLfqwv.

Abstract
In this paper, we examine what drives executive compensation in the UK. Using a dataset of directors of companies listed on the London Stock Exchange, we structurally estimate a dynamic model of executive careers that extends Roy’s model of sorting to incorporate nonpecuniary job utilities, agency issues, and human capital accumulation. Our approach builds on work of Gayle et al. (2015) who estimate a similar structural econometric model using data from the USA. However, we give more weight to the institutional framework in the UK which places significant constraints on governance and executive compensation.