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

Pablo de Andrés and Laura Arranz-Aperte

Finance Research Letters, 2019, vol. 29, issue C, 169-177

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: Independent directors; CEO compensation; Board of directors; Corporate governance; European companies (search for similar items in EconPapers)
JEL-codes: G30 G34 J30 M52 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:29:y:2019:i:c:p:169-177

DOI: 10.1016/j.frl.2018.07.006

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