D3 Tenders | FWRECR17133BEIS - Share Buybacks and Executive Pay

Notice Information

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Notice Title

FWRECR17133BEIS - Share Buybacks and Executive Pay

Notice Description

The overall purpose of this project is to examine the relationship between the use of share buybacks and executive remuneration. More specifically we would like to understand whether buybacks are being used (by design or accident) to artificially meet EPS targets in CEO pay contracts and/or to inflate the value of their share awards rather than to create long-tem value for the company. As explained above, this work will: * deliver the Government's manifesto commitment "to commission an examination of the use of share buybacks to ensure that they cannot be used artificially to hit performance targets and inflate executive pay" that has been reaffirmed by the BEIS response to the Corporate Governance Reform green paper, published on 29th August. It will help government come to a conclusion on whether there exists a significant problem, if so what it is, and what further steps might be necessary; and * contribute to current work on corporate governance reform, executive pay and investor stewardship, including potentially influencing revisions to the UK Corporate Governance Code and UK Stewardship Code. The project should seek to answer the following questions: * To what extent have share buybacks (by design or accident) helped meet EPS and total shareholder return (TSR) targets? * Are share repurchases used by executives to meet performance targets such as EPS and TSR, and to boost share based remuneration levels by creating (short-term) increases in share price? Does the academic literature suggest that the use of buybacks to meet targets is relevant to the UK? * Do performance targets such as EPS and TSR incentivise the use of share buybacks for myopic reasons that are not value creating for the company? * How important are performance related measures, such as, EPS and TSR to CEOs overall pay plan and how has this evolved over time? * Does the United States regulatory framework on buybacks and the typical pay structure for US CEOs result in a stronger use of buybacks to manipulate executive pay in the US than in the UK, or does the evidence suggest that these problems exist in the UK to a similar degree? The work should aim to answer these questions by examining the existing literature and by carrying out its own analysis based on up-to-date UK-specific data. It should also analyse the different regulatory frameworks in the US and the UK, and assess to what extent the existing US evidence applies to the UK (please refer to the section "Suggested Methodology" for more detail on the three suggested components of the project). The successful bidder may also indicate what basic steps could be taken to avoid share buybacks being misused to inflate executive remuneration, should the analysis suggest that this was indeed the case. This additional step is though optional. The provider is not expected to make any recommendations.

Notice Details

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Publication & Lifecycle

Open Contracting ID: ocds-b5fd17-8925dd56-b193-4f1d-aab2-750f53bef9b7
Publication Source: Contracts Finder
Latest Notice: https://www.contractsfinder.service.gov.uk/Notice/6ea44885-12b7-437e-82df-aeb1edfe7932
Current Stage: Award
All Stages: Award

Procurement Classification

Notice Type: Award Notice
Procurement Type: Framework
Procurement Category: Services
Procurement Method: Selective
Procurement Method Details: Call-off from a framework agreement
Tender Suitability: SME
Awardee Scale: Large

Common Procurement Vocabulary (CPV)

CPV Divisions

73 - Research and development services and related consultancy services

79 - Business services: law, marketing, consulting, recruitment, printing and security

CPV Codes

73200000 - Research and development consultancy services

79300000 - Market and economic research; polling and statistics

Notice Value(s)

Tender Value: £80,000 Under £100K
Lots Value: Not specified
Awards Value: £79,972 Under £100K
Contracts Value: Not specified

Notice Dates

Publication Date: 12 Dec 20178 years ago
Submission Deadline: 7 Nov 2017Expired
Future Notice Date: Not specified
Award Date: 16 Nov 20178 years ago
Contract Period: 21 Nov 2017 - 13 Apr 2018 1-6 months
Recurrence: Not specified

Notice Status

Tender Status: Complete
Lots Status: Not Specified
Awards Status: Active
Contracts Status: Not Specified

Buyer & Supplier

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Contracting Authority (Buyer)

Main Buyer: UK SHARED BUSINESS SERVICES LIMITED
Contact Name: Available with D3 Tenders Premium →
Contact Email: Available with D3 Tenders Premium →
Contact Phone: Available with D3 Tenders Premium →

Buyer Location

Locality: SWINDON
Postcode: SN2 1FL
Post Town: Swindon
Country: England
Major Region (ITL 1): TLK South West (England)
Basic Region (ITL 2): TLK7 Gloucestershire and Wiltshire
Small Region (ITL 3): TLK71 Swindon
Delivery Location: TLI London
Local Authority: Swindon
Electoral Ward: Rodbourne Cheney
Westminster Constituency: Swindon North

Supplier Information

Number of Suppliers: 1
Supplier Name: PRICEWATERHOUSECOOPER

Further Information

Notice Documents

https://www.contractsfinder.service.gov.uk/Notice/6ea44885-12b7-437e-82df-aeb1edfe7932
12th December 2017 - Awarded contract notice on Contracts Finder

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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