The governance of CEO incentives in English NHS Hospital Trusts

Ballantine, Joan, Forker, John and Greenwood, Margaret (2008) The governance of CEO incentives in English NHS Hospital Trusts. Financial Accountability & Management, 24 (4). pp. 385-410. ISSN 02674424

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Abstract

Institutional arrangements for the governance of CEO pay and turnover in English NHS Hospital Trusts replicate best practice for listed companies but with the additional feature of centrally imposed performance measurement. In this paper we investigate the impact of this unique combination of incentives on the relationship between CEO pay/turnover and Trust financial and operating performance in the period 1998–2005. We identify a strong association between poor Trust performance and CEO turnover but find little evidence that remuneration committees relate pay to performance in the best performing Trusts. Our findings raise questions about the economic rationale for remuneration committees in the governance of NHS Hospital Trusts.

Item Type: Article
Keywords: CEO incentives;NHS Hospital Trusts;performance;principal-agent analysis;remuneration committees
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: R Medicine > RA Public aspects of medicine > RA0001 Medicine and the state. Including medical statistics, medical economics, provisions for medical care, medical sociology > RA0410 Medical economics. Economics of medical care. Employment
Depositing User: Catrina Hey
Date Deposited: 21 Jan 2013 14:25
Last Modified: 21 Jan 2013 14:25
URI: http://sro.sussex.ac.uk/id/eprint/43502
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