Spreading the Yankee Way of Pay

Overseas companies have borrowed plenty of ideas from U.S. corporations, so it was only a matter of time until they adopted the U.S. approach to executive compensation. Once unheard of outside the States, monster bonuses and stock options worth millions are now being dangled in front of execs around the globe. From Tokyo to Taipei, Milan to Mexico City, executive-pay levels are rising, and sweeteners such as bonuses and options are being stirred into the mix.

Just five years ago, for instance, only 10 of 26 countries that compensation-consulting firm Towers Perrin surveyed permitted stock-option plans. By last year, the number had nearly doubled, to 19. Even mainland China has gotten into the act, with a smattering of companies now granting options, says Elaine Ng of compensation-consulting firm William M. Mercer in Hong Kong.