Lower top marginal tax rates are associated with higher CEO pay across countries: CEO pay and top marginal tax rates on labor income in 2012, selected OECD countries
| Top marginal tax rate on labor income (%) | Average CEO pay ($millions) | |
|---|---|---|
| Australia | 47.5 | 2.4 |
| Belgium | 59.447155 | 1.6 |
| Canada | 47.9696 | 3.1 |
| France | 54.838232 | 2.4 |
| Germany | 47.475 | 3.6 |
| Ireland | 52 | 2.4 |
| Italy | 47.2611 | 5.2 |
| Netherlands | 49.3428 | 2.4 |
| Norway | 47.8 | 1.7 |
| Sweden | 56.6 | 1.7 |
| Switzerland | 41.77789 | 6.1 |
| UK | 52 | 2.9 |
| US | 43.23 | 5.5 |
Note: Data on CEO pay from Fernandes et al. (2012). Top marginal tax rates from OECD (2023).