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Abstract:

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CEP Occasional Paper
Extreme Wage Inequality: Pay at the Very Top
Brian Bell and John Van Reenen
February 2013
Paper No' CEPOP34:
Full Paper (pdf)

Tags: wage inequality; firm performance; ceo compensation; performance pay; management

We provide new evidence on the growth in pay at the very top of the wage distribution in the UK. Sectoral decompositions show that workers in the financial sector have accounted for the majority of the gains at the top over the last decade. New results are also presented on the pay of CEOs in the UK. We show how improved measurement of pay points to a stronger pay-performance link than previously estimated. This link is stronger, and more symmetric, for those firms in which institutional investors play a larger role.

This paper has been published as:
American Economic Review Papers and Proceedings (2013) 103(3): 153–157