The purpose of this paper is to examine the determinants of the variation in Czech managers' pay levels. Among the questions we attempt to answer are: Are the managers in state-owned firms compensated differently than those in private owned firms? How much of the difference in pay is explained by differences in individual characteristics and job levels? What is the importance of the regional location or the industry affiliation of the firms for managerial pay differentials? We use data from a cross-section of Czech managers in 1998 and estimate earnings equations augmented with a host of explanatory variables related to firm and job characteristics.