The role of the media in executive pay: Evidence from the UK

Abstract

Using a large sample of FTSE All-Share companies between 2002 and 2013 was study the impact of media coverage on executive compensation. Beside, was assess whether: 1) excessive levels of executive compensation are associated with negative media coverage; 2) negative media coverage towards executive compensation acts as a constraint on compensation levels; 3) negative public opinion towards executive compensation affects certain components of the compensation package. It was concluded that the media acts as an effective watchdog in reporting excess pay but does not act as an effective governance mechanism in curbing it