GfK European Management Survey

The majority of Europeans believe that top managers are paid too much, are often not honest, and put their own interests first. Two-thirds also think that top managers' earnings should be legally regulated. These are the main findings of a new GfK Ad Hoc Research Worldwide survey conducted recently for The Wall Street Journal Europe.

The detailed results reveal that 70 percent of respondents believe that top managers are paid too much. One third go so far as to say they are without doubt overpaid. With a score of 60 percent, the British are particularly likely to hold this view. This also applies in Sweden and Central Europe, where half of respondents agree. However, the situation is very different in Denmark, where half believe that top managers are paid appropriately. Only a minority regard them as overpaid.

The research also shows that two-thirds think that these executives should be compelled by law to publish details of their total earnings and benefits package. In Central Europe, three quarters of interviewees supported this demand, and as many as 85 percent in Poland. Over half (56 percent) of Western Europeans, and over three quarters of those living in Central Europe, believe that the state should control or limit the pay of top earners. But two-thirds (67 percent) of Danes, along with 57 percent of Germans and 56 percent of the Dutch are against such government involvement.

The vast majority (83 percent) of those interviewed suspect CEOs of putting their own personal interests first. This view is commonly held. Germans, Dutch, Spanish and Poles are least likely to believe in the honesty of top management, with only 15 percent accepting their honesty. Two-fifths (42 percent) of those interviewed believe that CEOs put the share price and the interests of shareholders first. Just as many believe that CEOs mainly direct their attention towards the customers and their interests. Only one fifth believe that top management concerns itself with the company's employees.

Additionally, 30 percent of Western Europeans as a whole (but 46 percent of Finns and 47 percent of French) find it acceptable that when business is going badly, top management should be able to institute dismissals. But one in three believe that dismissals should only be undertaken if the staff council or the union agree. The influence of the unions is particularly strong in Germany: 55 percent of those interviewed in Germany would like dismissals only to occur with the agreement of those affected. Just 16 percent would recognise the threat of bankruptcy as an argument for cutting jobs.

In a crisis situation, the survey found that only two out of ten European citizens would allow the management a free hand. They believe that reducing the number of jobs can be viable, if management regards it as the correct course of action. Those in favour of freedom of action are primarily the Danes, on 46 percent. The Belgians and Swedes were next in line, with 30 percent in agreement. As few as two out of ten in Central Europe were in found to be in favour though.

The survey was conducted on 13,090 representatively selected people aged fourteen or over in fourteen countries between March 14 and April 23, 2002.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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