Why do American CEOs make twice as much as German CEOs?

Great article highlighting two cultural dimensions which are especially relevant when comparing the U.S. and Germany:
• The degree to which a culture is comfortable with the unknown (taking risks)
• The degree to which cultures are more individualistic or group-oriented
The author makes a point by showing how the U.S. are much more risk-comfortable and individualistic than Germany.


Seeing chief executives like Microsoft’s Satya Nadella make $84 million a year has become so commonplace in the U.S that it’s easy to glaze over and ignore it altogether. That’s especially the case for those approving such steep pay, Microsoft’s board of directors, who are comprised entirely of CEOs, chairmen of other organizations, chief financial officers, Nadella himself, and the president of Harvey Mudd College.

It’s easy to recognize the accomplishments of a peer. But the rank-and-file, on the other hand, has no voice in these discussions.

Microsoft isn’t unique on this account. In fact, the tech giant’s employees are likely paid better than those who work for most other companies. But the lack of a say on CEO pay among workers has played a major part in the sky high pay of American CEOs, who, on average, make twice as much as their German counterparts.

Chulalongkorn University’s Sorapop Kiatpongsan…

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