CEO remuneration: 'How much do you get?'

A survey of 298 quoted companies in Belgium, the Netherlands, France and Germany has indicated that CEOs of companies with a remuneration committee are paid more than their colleagues in companies without remuneration committees. It also reveals that the shareholder structure plays an important role in CEO remuneration, with CEOs in a concentrated shareholder structure earning less than CEOs in a fragmented shareholder structure.

According to researcher Xavier Baeten, the finding that the existence of a remuneration committee is associated with higher remuneration levels has to do with the fact that these committees pay more attention to market comparisons, which causes an upward effect. Baeten then argues that the question is therefore raised as to whether or not it should be a legal requirement for quoted companies to have a remuneration committee.

Previous Overview Next



Vlerick reflect is a free magazine. If you wish to subscribe or if you have comments, please contact us at [email protected].