Financial Markets Group London School of Economics and Political Science

Contributor(s): Dr Tom Kirchmaier, Dr Moqi Groen-Xu, Shuhei Ogino, Maximilian Schmidl | In our latest shortVIEW interview LSE Finance students share their opinion about Applied Materials’ AGM 2016 and whether proxy access matters.

Contributor(s): Dr Tom Kirchmaier, Dr Moqi Groen-Xu, Joven Jia Wen Liew, Ruobing Wang | In our latest shortVIEW interview LSE Finance students share their opinion about Smith & Nephew’s AGM 2016 and whether their current remuneration disclosure is sufficient.

Contributor(s): Prof Dirk Jenter, Dr Tom Kirchmaier | What has caused the massive growth in CEO compensation? Prof Dirk Jenter presents historical evidence and explains that market forces are the most likely cause of the rise in CEO compensation.

Contributor(s): Dr Carsten Gerner-Beuerle and Dr Tom Kirchmaier | The authors discuss the British regulation of executive remuneration, which is characterised by the unique feature of two votes, one forward looking on the company’s remuneration report, and one backward looking on the director’s annual remuneration package. Using the pay information disclosed by FTSE 100 companies, research shows that shareholders guide their vote by top line salary and appear to disregard the remaining substantial body of information provided to them. Shareholders differentiate between the two voting dimensions in about 23% of the cases. In contrast to the rationale of the legislation that introduced the two votes, however, differentiating voting behaviour is not driven by characteristics of the executive’s remuneration policy, but mainly by exceptionally positive future performance expectations.

Contributor(s): Sir Geoffrey Owen and Dr Tom Kirchmaier | Geoffrey Owen discusses his new book (joint with Michael M. Hopkins) on how biotechnology emerged as a new way of making medicines in the 1970s, how firms based in the US took the lead in the new techniques, and why the UK and other industrial countries have found it so hard to catch up.

Contributor(s): Steve Otter QPM, Dr Tom Kirchmaier | Steve Otter discusses with Tom Kirchmaier the parallels between Police Inspection and Governance, and how the Public sector – here in the form of the HMIC – can ensure good performance and conduct by the various police forces.