Are european CEOs paid equally? A study of the UK-continental Europe pay gap

We use an extensive dataset that covers eleven western European countries to document a CEO pay gap between the United Kingdom and continental Europe that is larger than the well-documented gap between US and non-US firms, and remains persistent despite the efforts to harmonize corporate governance...

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Detalles Bibliográficos
Autores: Andrés Alonso, Pablo de, Arranz Aperte, Laura
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universidad Autónoma de Madrid
Repositorio:Biblos-e Archivo. Repositorio Institucional de la UAM
Idioma:inglés
OAI Identifier:oai:repositorio.uam.es:10486/716425
Acceso en línea:http://hdl.handle.net/10486/716425
https://dx.doi.org/10.1016/j.frl.2018.07.006
Access Level:acceso abierto
Palabra clave:Board of directors
CEO compensation
Corporate governance
European companies
Independent directors
Economía
Descripción
Sumario:We use an extensive dataset that covers eleven western European countries to document a CEO pay gap between the United Kingdom and continental Europe that is larger than the well-documented gap between US and non-US firms, and remains persistent despite the efforts to harmonize corporate governance and pay in Europe. Country analyses show a stronger association between board independence and CEO pay in the UK. They also show a stronger association between ROA and cash payments, and a stronger association between market-to-book and equity-linked compensation, suggesting that closer scrutiny could partly contribute to CEO pay moderation in continental Europe.