Finally, it has been claimed (see Gregg et al, 1993) that the relationship between pay
and performance has been decoupled during the 1990s. In particular, Gregg et al (1993)
find a small significant correlation between pay and performance for the 1980s but no such
relationship for the 1990s. We examine the time series heterogeneity of the pay-
performance relationship using an innovative new data set on executive pay