What Is Meant by "Outrage Threshold" for Executive Compensation and How

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The Answer is The "outrage threshold" for executive compensation refers to the level at which the pay and benefits of top executives become so excessive that it triggers public outrage and criticism. This threshold is subjective and can vary depending on cultural, social, and economic factors.

In Europe, there is generally a lower tolerance for high executive compensation compared to the United States. This is due to cultural differences and historical perspectives on income inequality. In Europe, there is a stronger emphasis on social welfare and income equality, leading to a lower outrage threshold for executive compensation. As a result, there is often more public and regulatory scrutiny of executive pay in Europe.

In the United States, there is a higher tolerance for high executive compensation, and the outrage threshold is generally higher. This is partly due to the American emphasis on individual success and free-market capitalism, which has led to a more accepting attitude towards high executive pay. Additionally, the influence of shareholder capitalism and the prevalence of performance-based pay structures in the U.S. contribute to a higher outrage threshold for executive compensation.

Overall, the outrage threshold for executive compensation differs between Europe and the United States due to cultural, social, and economic factors, leading to varying levels of public and regulatory scrutiny of executive pay in each region.

What Is Meant by "Outrage Threshold" for Executive Compensation and How

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