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CEO PAY’S REGULATORY CONTEXT IN EUROPE The compensation of chief executive officers (CEOs) serves as an instrument for propelling performance and fostering accountability.

Jensen was the first to introduce the idea of agency costsand the “theory of the firm,” ( Jensen and Meckling 1976) which underpins modern corporate governance and executive compensation practice.

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Workspan Magazine February-March 2025 Inthisissue: Financial well-being ROI; executive compensation; reconciling internal vs. external pay strategy; internal talent marketplaces; more.

And when it comes to ensuring success on a global scale, compensation is a critical process for employers to get right.

Analyzing 1,070 public companies across 18 markets, the data found up to 81% of global organizations now tie executive compensation to people-related metrics, such as employee retention and turnover.

According to a Littler survey, only 5% of responding executives pulled back from DEI efforts in 2023, while 57% reported growing their programs over the past year.

Gorman said decisions about pay strategy, organizational alignment and individual alignment must be made by a combination of HR professionals, compensation professionals and the executive team.

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The table must include for the principal executive officer and, as an average, for the other named executive officers, the total compensation as presented in the Summary Compensation Table and a measure of “executive compensation actually paid,” which should be calculated according to the rules.