Top pay transparency in Europe: codes, convergence and clichés

Abstract

Following the waves of corporate scandals and the increasing attention to corporate governance, the transparency of reporting on director-level pay has increased across Europe. This article examines the extent of convergence in laws, codes and corporate reporting practices in regard to director-level pay in France, Germany, Switzerland and the UK. The paper analyses annual reports and the websites of 23 companies, using institutional theory to discuss the coercive, normative and mimetic pressures for convergence that are revealed, not just in the laws and codes in each country, but also in the standardized wording in the relevant sections of reports which have become clichés.

Keywords:

• Convergence
• corporate governance
• disclosures
• top executive pay