MUTUALITY,PERFORMANCE AND EXECUTIVE COMPENSATION†

ABSTRACTS The determinants of CEO compensation within the UK Building Society sector are investigated. Using an unbalanced panel data set for the period 1986–90, we find only weak support for the existence of a positive link between performance and CEO remuneration. In contrast we find age to be an important determinant of CEO pay increases. This finding reinforces the oft noted potential for inefficiencies in mutuals. Given that alternative market based control systems are absent, our results suggests that there is a lack of any mechanism to align owner and manager interests in the UK building societies.     

GALTONIAN REGRESSION ACROSS COUNTRIES AND THE CONVERGENCE OF PRODUCTIVITY†

ABSTRACTS A Galton model, in logarithmic form is used to explain the convergence of countries' productivities over time, including β and σ convergence. The ‘regression fallacy’ does not arise. When comparing growths and levels of productivity, countries should be classified by their initial levels of productivity, preferably after logarithmic transformation. Errors in the data may justify using an error-in-variables model, or the geometric mean of the original and reverse regressions, but this is not certain.     

MARKETS, IMPER FECTIONS AND THE DANGERS OF OVER-REGULATING ENERGY MARKETS

Government regulation in general has over-expanded. However, in British energy markets, a new form of regulation, concentrating on promoting competition in gas and electricity, has emerged to the benefit of consumers. If the government pursues its policy of targeting favoured energy activities, these gains will disappear, the costs of achieving environmental targets will be unnecessarily heavy and energy markets will be re-politicised.     

WOODWARD, TECHNOLOGY, ORGANIZATIONAL STRUCTURE AND PERFORMANCE — A CRITIQUE OF THE UNIVERSAL GENERALIZATION

This paper critically reviews the recent controversy over the relationship between technology, organizational structure and performance which was stimulated by the work of Woodward. An overview of the discussion is offered and an original evaluation offered on the basis of the latest contributions. This involves a detailed critique of the contribution of Zwerman. The conclusion is that the original Woodward thesis, as stated in the set of propositions for which systematic evidence was presented, should now be viewed as having been disconfirmed by the subsequent research.