LICOS Discussion Paper Series KU Leuven讨论文件系列.pdfVIP

LICOS Discussion Paper Series Discussion Paper 220/2008 Pay me Right: Reference Values and Executive Compensation Aleksandra Gregorič, Sašo Polanec, Sergeja Slapničar Katholieke Universiteit Leuven LICOS Centre for Institutions and Economic Performance Huis De Dorlodot Deberiotstraat 34 – mailbox 3511 B-3000 Leuven BELGIUM TEL:+32-(0)16 32 65 98 FAX:+32-(0)16 32 65 99 http://www.econ.kuleuven.be/licos Pay me Right: Reference values and Executive Compensation Aleksandra Gregoric Saöo Polanecy Sergeja Slapnicarz µ µ November 1, 2008 Abstract This paper studies the impact of external reference values on managerial com- pensation contracts. We consider the e§ect of adoption of non-binding pay norms on actual remuneration behavior using a unique country example. We Önd that intro- duction of pay norms changed the reference values for CEOs and led to adjustment of executive compensation towards new equilibrium. These pay norms a§ected pay in Örms with actual compensation below and above reference values. Further we Önd that