The Worst Countries To Be A CEO

CEO pay in the U.S. is not “excessive” but rather reflects pay-for-performance packages, according to a new paper.

Writing in the Review of Financial Studies, the authors of “Are US CEOs Paid More? New International Evidence” say the bulk of American CEO compensation tends to be from equity rather than a base salary, it appears to skew higher.

But when you control for firms’ sales, industry, and firm, ownership, and board characteristics, U.S. pay is only slightly above the global average.

We can also tell which countries have the best comp (U.K.), and the worst (France, Sweden).

Here’s the chart:

world ceo pay

Photo: Review of Financial Studies/SSRN

International differences have only become less noticeable, they add. In 2003, U.S. CEO pay premium was 58%. By 2007, they say, it had become statistically insignificant.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.