Title

Ownership, corporate governance and top management pay in Hong Kong

Document Type

Journal article

Source Publication

Corporate Governance: An International Review

Publication Date

3-1-2005

Volume

13

Issue

2

First Page

291

Last Page

302

Publisher

Blackwell Publishing Ltd

Keywords

Ownership; corporate governance; executive compensation

Abstract

Top management pay has been the focus of intense scrutiny and debate in many countries. Important issues include how compensation is decided and whether it is a function of performance. The purpose of this study is to examine top management pay in Hong Kong and to investigate how it is affected by firms’ ownership and governance characteristics. A distinguishing characteristic of many listed firms in Hong Kong is the large proportion of share capital owned by the directors, and we argue that this moderates top management pay. We also investigate the role of institutional ownership and board composition in the determination of pay. We find that director and institutional ownership moderate compensation but that there is little evidence that they encourage pay-for-performance reward schemes.

DOI

10.1111/j.1467-8683.2005.00423.x

Print ISSN

09648410

E-ISSN

14678683

Publisher Statement

Copyright © 2005 Blackwell Publishing Ltd .

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Cheng, S., & Firth, M. (2006). Ownership, corporate governance and top management pay in Hong Kong. Corporate Governance: An International Review, 13(2), 291-302. doi: 10.1111/j.1467-8683.2005.00423.x