THE REMUNERATION OF EXECUTIVES IN NORWAY

This article reports the results from a study of the remuneration of executives in 466 private companies in Norway. The study has focused on the relationships between amount size of compensation to executiver and their human capital and power and the structural properties of the companies and their environment. Compensation was measured as the sum of salary and bonus. A major part of the variation in the pay of the executives was explained by their education and experience. Size, geographic locality, and industry of the companies were also important determinants. The power of the executives was measured using three different variables: the percentage of shares in the companies owned by the executive, his or her prestige, and the executive's decision-power within the company. The results of the analysis showed a negative relationship between ownership and compensation. Large owners seem to receive less remuneration than executives without shares or with only a small fraction of the shares of the company. In contrast, both prestige and decision-power influenced the executive's pay in a positive direction.