The prince and the pauper? CEO pay in the Unites States and United Kingdom

Differences in CEO pay and incentives in the US and the UK for 1997 are documented. After controlling for size, sector and other firm and executive characteristics, CEOs in the US earn 45% higher cash compensation and 190% higher total compensation. The calculated effective ownership percentage in t...

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Bibliographic Details
Published inThe Economic journal (London) Vol. 110; no. 467; p. F640
Main Authors Conyon, Martin J, Murphy, Kevin J
Format Journal Article
LanguageEnglish
Published Oxford Oxford University Press 01.11.2000
Subjects
Chief executive officers
Comparative analysis
Compensation
Executive compensation
Statistical analysis
Studies
United Kingdom > UK
United States > US
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Summary:Differences in CEO pay and incentives in the US and the UK for 1997 are documented. After controlling for size, sector and other firm and executive characteristics, CEOs in the US earn 45% higher cash compensation and 190% higher total compensation. The calculated effective ownership percentage in the US implies that the median CEO receives 1.48% of any increase in shareholder wealth compared to 0.25% in the UK. The differences, can be largely attributed to greater share option awards in the US arising from institutional and cultural differences belween the two countres.
ISSN:0013-0133
1468-0297