“Executive Compensation – An Internationl Perspective”

Abstract

Executive Compensation has become a matter of hot debate and discussion in the industrial, business and academic arena. It has invariably attracted the attention of the industrialists, academicians and the policy makers all over the world. The recessionary trend experienced in the USA and the European Union and the slowing down of economic activity in Asia has intensified the review of executive compensation awarded to the top management in general and the CEOs in particulars. The present study is an earnest attempt on the part authors to present an international perspective of executive pay trends. The study aims to review the trends in executive compensation in the USA, the UK and in Asia. The study is significant in the sense that it will be helpful to understand the rationale behind hefty executive compensation, the repercussions of excessive compensation and the remedial measures recommended. I. Introduction The growing presence of transnational and global companies across the world has brought into focus the top management that steer the fortune of such companies and the compensation awarded to the directors and the chief executive officers (CEOs) of the companies. The recessionary trend experienced in the USA and the European Union and the slowing down of the economic activity in Asia has triggered a critical review of the executive compensation. In this backdrop, this paper is an earnest attempt on the part of the authors to present an international perspective of the executive pay trends.