We perform the first cross-country analysis of CEO compensation in Continental Europe,
examining how family control and institutional investors can influence the CEO compensation
level and the pay-for-performance link. We also show that family control curbs CEO
compensation, thus reducing CEO total compensation, including both cash and equity-based
compensation. We document that this effect is particularly strong in firms with family CEOs,
indicating that CEO compensation is not used by the controlling family to expropriate wealth
from minority investors.