EXECUTIVE COMPENSATION AND PAY STRUCTURES IN CROATIA: EXPLORING SECTORAL DIFFERENCES BETWEEN HOSPITALITY AND OTHER INDUSTRIES

This study examines the determinants and alignment of executive and employee compensation in Croatia’s largest listed companies, focusing on differences between the hotel and non-hotel sectors. The analysis uses a balanced panel of ten major firms listed on the Zagreb Stock Exchange. Fixed- and random-effects regressions are applied, with robustness checks for time effects and sectoral differences. The results indicate a dual pay structure: employee compensation is driven mainly by firm size and structural characteristics, while executive pay is more closely linked to profitability. Internal pay alignment is statistically significant across sectors, and pay dispersion increases as firms grow. Executive remuneration also shows sensitivity to performance. The study provides early sector-specific evidence on compensation patterns among Croatian listed firms and suggests a gradual move towards performance-based pay within the country’s evolving governance framework.