Welcome!

To all those reading this I am David Gibbs; I am a Lecturer in Company and Commercial Law at the University of Hertfordshire.

I created this blog as a general out-let of ideas for my research, as well as keeping those interested up-to-date on my research and general interests.

I completed my PhD thesis at the University of East Anglia in 2014. The thesis was recommended for the award of PhD with no corrections. My external examiner was Prof. Simon Deakin (Cambridge) and internal examiner was Prof. Morten Hviid.
My PhD research centred on directors' duties and company law. The thesis was titled 'Non-Executive Self-Interest: Fiduciary Duties and Corporate Governance'. It was a doctrinal and empirical study on whether self-interest was suitably controlled amongst non-executive directors.

My supervisors were Prof. Mathias Siems, Prof. Duncan Sheehan, Dr. Sara Connolly and Dr. Rob Heywood

All opinions of any existing or future blogpost are my own. They do not necessarily represent the views of any of my associated institutions.
ORCID 0000-0002-6596-8536


Tuesday, 12 June 2012

Executive Remuneration and banks

I have blogged elsewhere briefly about executive remuneration see here.

According to a recent survey from Manifest, see here, executive pay was up by 10% in FTSE 100 companies in 2011 but in more than 25 companies the rise was greater than 41%.

So, who is dragging this figure up? Such averages would suggest outliers. So from my data of 30 FTSE 100 companies over 5 years 2006-2010 below are two tables of accumulative executive remuneration. The first is the mean and median of executive remuneration which includes: Salary and benefits, annual bonuses, share options exercised, and estimated value of long term incentive schemes.

The second table is the mean and median of executive remuneration from the banking sector.


Executive Remuneration FTSE 100
2006
2007
2008
2009
2010
Mean
£13252224
£14015869
£12873733
£12842835
£15786086
Median
£10688919
£12181900
£11690076
£8715581
£13254605




Executive Remuneration FTSE 100 (banking sector)
2006
2007
2008
2009
2010
Mean
£26537106
£27249329
£25528610
£18476199
£25184382
Median
£23432917
£22214810
£22349487
£17130259
£22695000



Thus it is no great surprise to find the banking sector is the one that is dragging up remuneration. The mean between 2009 to 2010 itself saw an increase of 26.6%. However, this data is only descriptive and accumulative. Further evidence from the data also shows a significantly larger ratio of long term incentives to base salary in the banking sector. Thus, whilst the figures are high not all of the figure represents money earned. The long term incentive schemes is merely an award that is subject to performance and service conditions, see here for a little more detail.

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