International Perspectives on Executive Compensation

Citation

Kabir R (2008) International Perspectives on Executive Compensation. Journal of Multinational Financial Management, 18 (1), pp. 1-3. https://doi.org/10.1016/j.mulfin.2007.07.002

Abstract
There is a world-wide surge in interest on executive compensation from investors, analysts, policy makers, journalists and the general public. The continuous use of headings in the mass media (e.g., outrageous salaries, fat cat pay, and greedy executives) has become quite embarrassing for corporate executives. But, how much do we really know about how firms across the world reward their (chief) executives and whether providing a higher remuneration achieves the intended corporate objectives? The answer is unequivocal: not much. It is mainly due to the lack of publicly available information on executive pay and very intensive data collection requirements to undertake a serious scientific study. Similar to studies of many other corporate issues, researchers primarily from the United States are gifted with access to large-scale data on executive pay. This is also substantiated by the two available survey papers on executive compensation ( [Murphy, 1999] and [Core et al., 2003]) that document evidence on US research only. As a consequence of increased global awareness towards improving corporate governance practices and the fact that many companies are mired in various scandals, non-US countries are currently witnessing public disclosure of compensation of CEOs and other top executives of stock exchange listed companies.

Keywords
Executive compensation; Pay-performance sensitivity

Notes
Output Type: Editorial

Journal
Journal of Multinational Financial Management: Volume 18, Issue 1