Title: Institutional determinants of university CEOs' compensation - evidence from the UK

Authors: Chew Ging Lee; Pek Kim Ng

Addresses: Nottingham University Business School, The University of Nottingham Malaysia Campus, Jalan Broga, 43500 Semenyih, Selangor, Malaysia ' Nottingham University Business School, The University of Nottingham Malaysia Campus, Jalan Broga, 43500 Semenyih, Selangor, Malaysia

Abstract: This article examines whether CEOs of higher education institutions in the UK are rewarded for the performance of their firms. Results clearly show a link between firm performance and pay. In particular, organisation size, age, ranking, research quality, and graduate employability positively influence executive remuneration. The most important predictor of university CEOs' income is the employability of its graduates. Hence, post-university labour market outcomes are critical in attracting financial rewards.

Keywords: educational economics; institutional determinants; executive compensation; wage differentials; UK higher education; United Kingdom; university CEOs; CEO compensation; university performance; executive pay; university size; university age; university ranking; research quality; graduate employability; executive remuneration.

DOI: 10.1504/GBER.2015.068564

Global Business and Economics Review, 2015 Vol.17 No.2, pp.151 - 163

Available online: 17 Mar 2015 *

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