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Why do American CEOs get paid more than their European Counterparts?

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  • Ozsoz, Emre

Abstract

American CEOs rank among the highest-paid executives globally, while European CEOs managing similarly sized companies earn significantly less than their U.S. counterparts. This paper examines the factors contributing to the disparities in executive compensation between the U.S. and Europe. The findings suggest that tax policies, company valuations, and cultural perspectives on wealth accumulation help explain some of these differences.

Suggested Citation

  • Ozsoz, Emre, 2022. "Why do American CEOs get paid more than their European Counterparts?," MPRA Paper 123481, University Library of Munich, Germany, revised Dec 2024.
    • Handle: RePEc:pra:mprapa:123481
    as

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    File URL: https://mpra.ub.uni-muenchen.de/123481/1/MPRA_paper_123481.pdf
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    References listed on IDEAS

    as
    1. Brookman, Jeffrey T. & Thistle, Paul D., 2013. "Managerial compensation: Luck, skill or labor markets?," Journal of Corporate Finance, Elsevier, vol. 21(C), pages 252-268.
    2. David Newton & Mikhail Simutin, 2015. "Of Age, Sex, and Money: Insights from Corporate Officer Compensation on the Wage Inequality Between Genders," Management Science, INFORMS, vol. 61(10), pages 2355-2375, October.
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    5. Paul L. Joskow & Nancy L. Rose, 1994. "CEO Pay and Firm Performance: Dynamics, Asymmetries, and Alternative Performance Measures," NBER Working Papers 4976, National Bureau of Economic Research, Inc.
    6. Baiman, Stanley, 1990. "Agency research in managerial accounting: A second look," Accounting, Organizations and Society, Elsevier, vol. 15(4), pages 341-371.
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    More about this item

    Keywords

    executive compensation; CEO pay; corporate governance;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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