Will Executive Pay Globalise Along American Lines?

In the United States, the remuneration packages of top executives are characterised by a strong emphasis on pay-for-performance and by a highly lucrative "upside". There is much discussion of the possibility that executive pay practices will globalise in accordance with this pattern. This paper assesses whether such convergence is likely to occur. It does so by considering market-oriented dynamics that could constitute a "global compensation imperative". It also takes into account possible obstacles to the Americanisation of executive pay, such as legal regulation, "soft law" and "culture". The paper concludes with a brief series of normative observations. Copyright Blackwell Publishing Ltd 2003.