A comparison of CEO pay-Korean listed firms and U.S. listed firms

ABSTRACT

Using the first set of individual compensation and public data for senior executives in South Korea, we document direct evidence on the level, construction, and mechanisms of CEO remuneration in South Korea and perform a matched sample to comparisons between Korea and the United States. Our findings show that there are some differences between the Korean and the U.S. systems. In South Korea, chief executives are paid mainly in salary. Option grants and long-term incentives are less important. The pay-performance sensitivity of South Korean CEOs is not as high as in the United States.

KEYWORDS:

• United States
• South Korea
• pay-performance sensitivity
• CEO remuneration

GEL CLASSIFICATION:

• G30
• G34

Disclosure statement

No potential conflict of interest was reported by the authors.