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Will Executive Pay Globalise Along American Lines?
Author(s) -
Cheffins Brian R.
Publication year - 2003
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/1467-8683.00298
Subject(s) - remuneration , executive compensation , normative , compensation (psychology) , convergence (economics) , soft law , law and economics , accounting , business , economics , political science , law , psychology , social psychology , macroeconomics , international law
In the United States, the remuneration packages of top executives are characterised by a strong emphasis on pay–for–performance and by a highly lucrative “upside”. There is much discussion of the possibility that executive pay practices will globalise in accordance with this pattern. This paper assesses whether such convergence is likely to occur. It does so by considering market–oriented dynamics that could constitute a “global compensation imperative”. It also takes into account possible obstacles to the Americanisation of executive pay, such as legal regulation, “soft law” and “culture”. The paper concludes with a brief series of normative observations.