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Complications Posed by Country Differences

Stock options:  the right to purchase a specific number of shares of stock for a specified price at specified times [usually granted to key employees]

Firms struggle to determine how to pay managers in different countries because of the complications caused by legal, cultural, and government-related factors.

Total compensation, forms of compensation, as well as the gap between top executives and hourly workers vary substantially across countries.

While the inequality between CEO and average worker pay is greatest in the United States, it is smallest in Japan.

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