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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title The Public Perception and Normative Valuation of Executive Compensation: An International Comparison
Organization Unit
Authors
  • Andreas Kuhn
Language
  • English
Institution University of Zurich
Series Name Working paper series / Institute for Empirical Research in Economics
Number No. 518
ISSN 1424-0459
Date 2010
Abstract Text This paper describes individuals' perceptions and normative valuations of executive compensation using comparable survey data for fifteen OECD member countries. An overwhelming majority of individuals (more than 90%) believes that top executives earn more than they actually deserve. However, there is also substantial variation in the actual and ethical levels of executive compensation, both within and across countries. The empirical analysis further shows that subjective estimates of executive pay are associated with objective measures of inequality and redistribution, and that individuals' perceptions and normative valuations of executive compensation are associated with their more general political preferences.
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