Modern CEOs are foreign and better paid

The modern company CEOs is hired in, often of foreign origin, a short-stayer, is better paid than his predecessors and quicker to sell the company, the Volkskrant reports on Friday.

And while companies argue that sharp rises in directors pay are needed to keep Dutch managers in the country ‘in practise companies pay more to bring foreign CEOs to the Netherlands’.
The research was carried out to launch a new Volksrant website focusing on senior staff.
The generation of managers in 1986 had served an average of 20 years in the company they were leading, but by 1996 that term of service had shrunk to 14 years. And the new generation reach the top within 10 years of joining a firm, the Volkskrant says. Of the 24 firms in the blue chip AEX index, 10 have a CEO appointed from outside.
External appointees are also largely foreign, the Volkskrant says. In 1986, just one of the 20 AEX firms had a foreign boss, now 50% do. And those foreign CEOs earn on average €800,000 more a year than their Dutch counterparts.
Meanwhile, research by senior management lobby group NCD says that top staff earned 2% less in bonuses last year, while the fixed part of their salary rose 3.3%. This showed ‘extremely controlled pay developments for directors,’ the institute said.
Nevertheless, unease over the size of managerial pay packets would continue, chairman Willem Hollander told news agency ANP.
The NCD’s research, based on the experiences of over 450 directors and supervisory board members, showed that bosses work an average of 54.1 hours a week. That is 38% more than agreed in their contracts, the NCD pointed out.

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