TY  - JOUR
AU  - Conyon,Martin J.
AU  - Freeman,Richard B.
TI  - Shared Modes of Compensation and Firm Performance: UK Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8448
PY  - 2001
Y2  - August 2001
UR  - http://www.nber.org/papers/w8448
L1  - http://www.nber.org/papers/w8448.pdf
N1  - Author contact info:
Martin Conyon
Senior Fellow
Center for Human Resources
The Wharton School
University of Pennsylvania
Philadelphia, PA 19194-6358
E-Mail: conyon@wharton.upenn.edu

Richard B. Freeman
NBER
1050 Massachusetts Avenue
Cambridge, MA  02138
Tel: 617/868-3900
Fax: 617/868-2742
E-Mail: freeman@nber.org
M1  - published as Martin Conyon, Richard B. Freeman. "Shared Modes of Compensation and Firm Performance U.K. Evidence," in David Card, Richard Blundell and Richard B. Freeman, editors, "Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000" University of Chicago Press (2004)

AB  - This paper examines the use and consequences of shared compensation plans (profit sharing, profit related pay, SAYE schemes and company stock option plans) in a sample of UK workplaces and firms in the 1990s.  The use of these plans has increased over time, in part in response to government programs. The evidence shows that companies and workplaces adopting shared compensation practices have had higher productivity than other firms, but the effects vary among programs, suggesting that the particulars matter a lot in aligning shared compensation and work place activities.  Consistent with incentive theory, the evidence also shows that firms and workplaces with shared compensation practices have a higher incidence of shared decision-making / information sharing practices.
ER  -