Stacked deck: can governance structures explain CEO compensation differences across countries?

Deskripsi

Countries like the United States, where shareholder rights are strongly protected and merger/acquisition activity is prevalent, exhibit higher income inequality, with CEOs earning significantly more than average workers compared to European nations like France and Germany. The authors attribute these differences to governance norms, such as the degree of unionization, stakeholder representation on boards, and codetermination practices. The article also explores alternative explanations for income inequality, including technological advancements and globalization, but argues that governance structures provide a more compelling explanation.