Board of Directors and CEO’s Compensation: The Case of Listed European Firms

Abstract

The aim of this research is to assess the role of the board of directors in determining CEO’s compensation in the context of listed European companies for 3 fiscal years (2016-2017-2018). Based on a sample extracted from 11 European countries (France, Belgium, Germany, Italy, Spain, Ireland, Sweden, Denmark, Finland, United Kingdom and Netherlands), the results reveal the importance of board of directors characteristics in determining of CEO’s compensation. The board size, CEO duality, the presence of independents directors and the existence of compensation committee have been shown as determinants of CEO’s compensation.