Conversion, performance and executive compensation in UK building societies

Radha K. Shiwakoti*, John K. Ashton, Kevin Keasey

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review


Interest in the causes of the conversion of building societies from a mutual to a proprietary form of ownership has grown in recent years. In this study, one of a number of possible explanations underlying the conversion of building societies is examined; namely, the potential for directors to enhance their remuneration once plc status has been achieved. Empirical tests indicate that the large increases in remuneration for converted building society boards and chief executives are not justified in terms of company performance and may, indeed, have been a factor driving the conversion of building societies.

Original languageEnglish
Pages (from-to)361-370
Number of pages10
JournalCorporate Governance: An International Review
Issue number3
Publication statusPublished - Jul 2004


  • Building societies
  • Compensation
  • Demutualisation

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