Executive Compensation and Anglo-American Influence: European Evidence

Abstract

This study examines whether being listed on an Anglo-American stock exchange and/or having Anglo-American executive board members influences executive compensation, using company-level data from Germany, France and the Netherlands. Our sample consists of 581 executive directors, representing 142 listed companies from these three countries. We find a significant and positive relationship between Anglo-American listing and executive compensation. In addition, the results reveal a positive relationship between being an Anglo-American executive serving on a non-Anglo-American board and compensation. However, no significant relationship is found between having at least one Anglo-American on the board and executive compensation for non-Anglo-Americans who sit on the same board.

Keywords: Executive compensation, corporate governance, firm performance, Anglo-American influences