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This paper discusses the adoption of share-based compensation plans among Central and Eastern European (CEE) public companies composing major national stock exchange indices in Poland (WIG 20), the Czech Republic (PX) and Hungary (BUX). The analysis shows that the spread of such pay practices depends on the characteristics of major shareholders of the company, the state and foreign parent companies being the most prominent influencing factors. The results are discussed in the light of the legal environment in respective countries.

Determinants of share-based compensation plans in Central and Eastern European public companies: An institutional analysis