Tenure and Contracts: The Experience of UK CEOs
- 1 August 1994
- journal article
- Published by Emerald Publishing in Personnel Review
- Vol. 23 (5) , 25-33
- https://doi.org/10.1108/00483489410067772
Abstract
Describes the tenure and contract experience of approximately 300 UK chief executive officers (CEOs) in 1993. Draws on the results of a retrospective postal questionnaire and examines whether the recommendations of the Cadbury report regarding contract provision of senior executives are being adhered to. The results of this descriptive exercise show that the median contract length of a typical UK CEO in a large company is three years. This is in line with the recommendations made by the Cadbury report. We find that on average such CEOs have been with their company for about five and a half years. Argues that, as a matter of good policy, companies should reveal the reasons for the length of the contract received by the CEO if this exceeds 12 months.Keywords
This publication has 4 references indexed in Scilit:
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- The Report of the Cadbury Committee on The Financial Aspects of Corporate Governance: The Code of Best PracticeCorporate Governance: An International Review, 1993
- Optimal Incentive Contracts in the Presence of Career Concerns: Theory and EvidenceJournal of Political Economy, 1992
- Contracts and the Market for ExecutivesPublished by National Bureau of Economic Research ,1990