Business, Management and Accounting
3 years ago

Spanish firms pay executives more due to weaker governance structures.

Managerial and Decision Economics
Excess executive compensation and corporate governance in the United Kingdom and Spain: A comparative analysis
Gregorio Sánchez Marín, María Encarnación Lucas‐Pérez, J. Samuel Baixauli‐Soler, Brian G. M. Main, Antonio Mínguez‐Vera

Paper Summary

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The study compared executive compensation in UK and Spanish firms over 8 years. Spanish firms pay their executives more than UK firms because of differences in ownership and board structures. UK firms have better alignment between executive pay and company performance.