Remuneration Structure and Corporate Entrepreneurship: A UK Study

This purpose of this paper is to investigate the effect of remuneration structure and corporate entrepreneurship. To reconcile the inconsistencies and non-conclusive findings from previous studies this study developed two propositions to test: the relationship of Executive Stock Option (ESO) and corporate entrepreneurship and the use of performance criteria in awarding bonuses to executives and entrepreneurial activities. Using the mixed method approach this study selected the top 100 companies in the U.K for the quantitative study and six cases were selected for the case studies. The findings indicated that there is no relationship between Executive Stock Option (ESO) and corporate entrepreneurship activities. However, the finding was partially supported in the use of performance criteria in awarding bonuses to executives and entrepreneurial activities.