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

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6 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

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

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