Executive Remuneration in the EU: The Context for Reform

摘要: This paper shows how clear divergences arise across the EU in executive remuneration is structured. Sharp differences also occur adoption of best practices pay-setting and disclosure pay. These are broadly line, as agency theory predicts, with block-holding dispersed ownership governance profiles. While has recently adopted two important 2004 Recommendations on pay, argues that EU-led reforms should be undertaken care. Harmonization limited only address disclosure. Disclosure central to effective incentive contracts it can manage particular costs blockholding systems, without intervening choices structures. Any other interventions pay process carry risk distorting competition interfering dynamics different structures economic contexts.