Using a sample of 781 U.K. firms over the period 2000–2008 we study the relationship between remuneration dispersion at executive board level and firm performance. We find that this relationship is sensitive to nationality composition of the executive boards. In contrast with findings on...

The empirical literature on the effect of dispersion of executive remuneration (i.e., the intensity of a tournament structure) on the comparative performance of companies is mixed. Studies on US data tend to find strong positive effects but non-US studies tend to fail to find an effect. This...