Executive Compensation Disparities: Analysing Pay Ratios Across Global Retail Sectors
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Authors
Bell, B and Tshimanga, M
Issue Date
2025-07
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Abstract
Purpose: The study aimed to analyze executive pay ratios across four global retail regions—USA, Southern Africa, UK & EU, and Asia—and assess how cultural and economic factors influence disparities in executive compensation.
Methodology: A quantitative design using purposive sampling of 16 global retailers was adopted. Pay ratio data from annual reports were analyzed using Kruskal-Wallis and Tukey’s HSD tests, considering cultural and economic factors.
Results: The study found significant regional variations in executive pay ratios, with the highest ratios observed in the USA and the lowest in Asia. Post-hoc analysis revealed statistically significant differences between USA and bothAsia and the UK & EU.
Conclusion: Executive pay ratios in the global retail sector are shaped by both cultural perceptions of fairness and hierarchical structures, as well as by economic variables tied to firm scale and market environment.
Recommendations: Retail companies should contextualize executive compensation strategies within regional cultural and economic frameworks. Policymakers may consider refining disclosure regulations to improve transparency and comparability, while boards should balance talent retention with equitable pay practices to mitigate potential reputational risks.