Inequality & Distribution
Sep 4, 2018
In Europe and the United States, stock-based compensation discourages long-term corporate sustainability
Working Paper Series
This paper adds to the empirical evidence on the extent to which stock-based pay incentivizes and rewards European corporate executives. It shows that the actual realized gains (that is, take-home compensation) from stock-based pay of CEOs in European publicly-listed firms may be underestimated by the use of “estimated fair value” measures. The paper also documents the heterogeneity among countries in terms of the levels and components of CEO take-home pay. We base our work on a sample of 301 large, publicly-traded companies listed in the S&P Europe 350 index from 11 EU countries: Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Spain, Sweden and United Kingdom for the fiscal year 2015. Through analyzing companies’ annual reports, we have hand-collected data on various elements of compensation of the company’s CEO in 2015, including the gains that executives realize from stock-based pay. We document that on average half of the total compensation of the European CEOs in our sample is stock-based, measured by actual realized gains, with large differences among countries. Although in some European countries the majority of total compensation is stock-based, the proportions are still well below those that prevail in the
May 30, 2019
A collection of our research on populism, globalization and nationalism
May 1, 2019
Lance Taylor, Emeritus Professor of Economics at The New School for Social Research, delivers the annual Heilbroner Memorial Lecture on the Future of Capitalism.
May 22, 2019
Artificial intelligence doesn’t have to be a job killer—if we use it right
Jun 4, 2019
Returns on wealth exceed growth for more countries, more years, and more dramatically than Piketty has found
Jun 10, 2019
How free electricity could fight climate change and inequality
Jun 21, 2019 |
Jun 20, 2019
There is not one opioid crisis in America—there are many. And supply-focused measures won’t stop them.
Sep 22, 2016
Remarks by IMF managing director Christine Lagarde remind us why gender remains a major research and policy focus for the Fund — and for the Institute for New Economic Thinking
Hosted by Private Debt
Jun 20–21, 2019
Shaped by the 2008 financial crisis, a new generation of economists is expanding the boundaries of economic thinking on credit cycles, private debt, and financial stability.
Jul 10, 2019
When the stock market grows faster than the housing market, the gains of the top 1% outpace those of the middle class
Oct 22, 2017
Joseph Stiglitz, Michael Spence and a global team of leading thinkers are calling for new thinking & new rules for the world economy
Jul 17, 2019
Economist Marie Mora discusses the deep economic crisis that has afflicted Puerto Rico for years
Jul 24, 2019
Artificial intelligence promises to make our lives easier. But is the cost losing some of our humanity?