The Impact of 'A - Day' on Executive Pensions and Pay for Performance
Morris, D.J., Gregory-Smith, I., Main, B.G.M. et al. (2 more authors)
(2015)
The Impact of 'A - Day' on Executive Pensions and Pay for Performance.
Working Paper.
Sheffield Economic Research Paper Series (SERPS), 201502
(026).
Department of Economics, University of Sheffield
ISSN 1749-8368
Abstract
This paper evaluates the impact of the ‘A-day’ pensions simplification legislation introduced in the UK in 2006. This reform exogenously affected the cost of pension provision for firms whose executives had accumulated pensions benefits in excess of the prescribed limit. We find a strong reaction in the form of pension provision in a sample of UK executive directors. After A-day, many executives saw their defined benefit scheme replaced with supplementary cash payments. This had the unintended consequence of significantly decreasing the relationship between executive pay and firm performance for those executives affected by the reform.
Metadata
Item Type:
Monograph
Authors/Creators:
Morris, D.J.
Gregory-Smith, I.
Main, B.G.M.
Montagnoli, A.
Wright, P.
Copyright, Publisher and Additional Information:
The Sheffield Economic Research Paper Series (SERPS) offers a forum for the research output of the Department of Economics, University of Sheffield. Papers are reviewed for quality and presentation by two internal referees and a departmental editor. However, the contents and opinions expressed remain the responsibility of the author(s). Comments are welcomed and should be addressed to the individual author(s).
Keywords:
Executive compensation; Executive pensions; Pay for Performance; A-day
CORE (COnnecting REpositories)
CORE (COnnecting REpositories)