Solved: Comment on the wide range of compensation paid to CEOs in Europe, the United

Comment on the wide range of compensation paid to CEOs in Europe, the United Kingdom, and the United States. What accounts for the wide range compensation differences paid to CEO’s in Europe, United Kingdom, and United States? please reply with a 600-800 words

Expert Answer

Answer- If we compare among all three i.e. CEOs in Europe, the United Kingdom, and the United States, as per data we can say that US CEO gets highest compensation followed by UK CEO & then Europe CEO. This is the study which has been done recently & data says the whole story. The CEO pay ratio is also very high in this regard. As per the latest data, US CEOs earn from 400-500 times the median salary for workers. If I talk about CEOs in UK then the ratio is 22 & in Europe the figure is 15. Though these numbers are surprising sometimes but this is the fact which we have to accept & the trend goes like this. If we talk about world then all these countries are at one side in terms of compensation & other countries are at other side. Major part of the compensation has been come from these three countries. Also the compensations can be in any form like cash salary, cash bonuses, stock awarding, company shares, gift vouchers etc. There are chances that these ways of compensations are very different in other countries & that are the reason, they stand apart. In some cases, some of the part of compensation is received at the end of the year & we have to have completed some time period so that we became eligible to get the compensation.

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The reason of higher compensation in reference with US CEOs is they take more risk in doing the work which is calculated. Other CEOs are not very much confident in taking the risk & even if they take the risk then that is not calculated & money lost at times. US CEOs are more creative & innovative & they always bring new technologies in their work followed by UK & then Europe. US CEOs are doing smart work rather than hard work. They prioritize their work & do the proper planning in completing the work. They give complete focus towards the quality of the work. The objectives & goals are very much clear & do the proper analysis in terms of achieving the objectives of the organization. US CEOs are inclined towards the profit margin numbers & always think to maximize the profit followed by UK CEOs & Europe CEOs. If there are good companies who have hired CEOs & their profit margins are going high then they are likely to pay good compensation depending on the performance driven by CEOs. CEOs are always analytical & number driven & they go by past data. CEOs are doing the analysis in a holistic way & always believe that things will take a shape in some day. American CEOs give more focus on the process part & thinks to achieve the excellence through that. They give their thought to improve the process by some means which will give benefit to the organization in terms of process excellence. American CEOs gives attention to the revenue & always have planned to increase the revenue & thus making profit making organization. Their horizons are very wide & always ready to accept the challenges at any given point of time. UK CEOs are also very much into creativity & always believe that if the process excellence is achieved then the productivity gets increases & thus the profit numbers will eventually increases. UK CEOs are more focusing towards the prioritization of the work & then think that if everything goes fine then things will be in a better shape. European CEOs also thinks towards the process excellence part & give focus to the problems & then solved them by their innovative skills.

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