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

Pablo de  Andrés; Laura Arranz-Aperte

doi:10.1016/j.frl.2018.07.006

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

Pablo de Andrés , Laura Arranz-Aperte

Accounting, Helsinki

Universidad Autónoma de Madrid

Research output: Contribution to journal › Article › Scientific › peer-review

5 Citations (Scopus)

Abstract

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.

Original language	English
Peer-reviewed scientific journal	Finance Research Letters
Number of pages	9
ISSN	1544-6123
DOIs	https://doi.org/10.1016/j.frl.2018.07.006
Publication status	Published - 05.07.2018
MoE publication type	A1 Journal article - refereed

Keywords

512 Business and Management
Independent directors
CEO compensation
Board of directors
Corporate governance
European companies

Access to Document

10.1016/j.frl.2018.07.006

OpenUrl availability

Full text

Cite this

@article{110364da26c9460d875d3d396e23043c,

title = "Are European CEOs paid equally? A study of the UK-continental Europe pay gap",

abstract = "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.",

keywords = "512 Business and Management, Independent directors, CEO compensation, Board of directors, Corporate governance, European companies",

author = "Andr{\'e}s, {Pablo de} and Laura Arranz-Aperte",

year = "2018",

month = jul,

day = "5",

doi = "10.1016/j.frl.2018.07.006",

language = "English",

journal = "Finance Research Letters",

issn = "1544-6123",

publisher = "Academic press",

}

TY - JOUR

T1 - Are European CEOs paid equally? A study of the UK-continental Europe pay gap

AU - Andrés , Pablo de

AU - Arranz-Aperte, Laura

PY - 2018/7/5

Y1 - 2018/7/5

N2 - 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.

AB - 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.

KW - 512 Business and Management

KW - Independent directors

KW - CEO compensation

KW - Board of directors

KW - Corporate governance

KW - European companies

U2 - 10.1016/j.frl.2018.07.006

DO - 10.1016/j.frl.2018.07.006

M3 - Article

SN - 1544-6123

JO - Finance Research Letters

JF - Finance Research Letters

ER -

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

Abstract

Keywords

Access to Document

OpenUrl availability

Fingerprint

Cite this