How do board and chief executive characteristics influence executive compensation in non-profit organizations? The case of UK charities

Nguyen, Tam; Soobaroyen, Teerooven

Abstract

This paper examines the influence of trustee board composition and chief executive officer (CEO) characteristics on the CEO compensation levels in the UK charitable sector. We find that a higher extent of board diversity and the existence of a remuneration or nomination committee are positively associated with CEO compensation, while the presence of a specialist on the audit committee is negatively associated to the level of CEO compensation. In addition, the working experience of the CEO in the non-profit sector is negatively associated to compensation and the same applies to charities with a higher reliance on government funding. The findings from this study bring forward implications from the social theory of agency in explaining the factors associated to CEO compensation in the non-profit context.

Citation

Nguyen, T., & Soobaroyen, T. (2017). How do board and chief executive characteristics influence executive compensation in non-profit organizations? The case of UK charities

• Conference Name: Public Services and Charities: Accounting, Accountability and Governance at a Time of Change
• Start Date: Dec 1, 2017
• End Date: Dec 1, 2017
• Acceptance Date: Dec 1, 2017
• Publication Date: 2017
• Deposit Date: Mar 5, 2019
• Pages: 1-26
• Keywords: CEO compensation; governance quality; board diversity; agency theory; social theory of agency
• Public URL: https://nottingham-repository.worktribe.com/output/1607358