The "outrage threshold" for executive compensation is generally lower in Europe than in the United States because the issue of excesses in executive pay packages is much more salient in the minds of most Europeans where European executives in major firms earn only about 40% of what their American counterparts take home.

Question

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In Europe, there is generally a lower tolerance for high executive compensation compared to the United States, partly due to cultural differences in attitudes towards income inequality and corporate governance practices. European executives typically earn less than their American counterparts, reflecting these differing societal norms and expectations.

The "Outrage Threshold" for Executive Compensation Is Generally Lower in Europe