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Vanderbilt Law School Faculty Publications

Series

2004

Executive pay

Articles 1 - 2 of 2

Full-Text Articles in Law

Explaining The International Ceo Pay Gap: Board Capture Or Market Driven?, Randall Thomas Jan 2004

Explaining The International Ceo Pay Gap: Board Capture Or Market Driven?, Randall Thomas

Vanderbilt Law School Faculty Publications

If we look at convergence through the lens of the Risk Adjustment Theory, then international pay convergence will only occur if U.S. and foreign CEOs' firm-specific risk levels converge. Empirically, this is a difficult claim to test because of the paucity of data available on CEOs' individual wealth levels and stockholdings. The one component we can most easily observe, stock option usage, is presently quite different, with U.S. levels far exceeding those abroad. For the near future, this trend seems likely to continue, making it difficult to forecast convergence any time soon. The international executive pay gap is one of …


The Globalization (Americanization?) Of Executive Pay, Randall Thomas, Brian R. Cheffins Jan 2004

The Globalization (Americanization?) Of Executive Pay, Randall Thomas, Brian R. Cheffins

Vanderbilt Law School Faculty Publications

In the United States, the remuneration packages of top executives are characterized 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 globalize in accordance with this pattern. This Article assesses whether such convergence is likely to occur. After surveying briefly the key components of managerial remuneration and after examining the essential elements of the "U.S. pay paradigm," the Article considers market-oriented dynamics that could constitute a "global compensation imperative." These include wider dispersion of share ownership, more cross-border hiring of executives, growing international merger and …