This study examines managerial contracts and compensation, highlighting differences between the United States, Europe, and Croatia. The focusis on key elements such as base salaries, bonuses, stockoptions, and additional benefits. Managerial contracts are designed to provide optimal working conditions for managers, who handle complex tasks, significant responsibilities, and risks. The necessary skills for managers include leadership, communication, strategic thinking, and analytical abilities, which justify high compensation levels. There search explores different management levels (executive, middle, andoperational) and the methodologies used to create these contracts. The empirical section analyzes specific contracts, identifying key features and differences, and compares them with contracts for lower-level employees. Effective corporate governance plays a crucial role in reducing capital costs and increasing efficiency, guiding managers towards profitable decisions and long-term company commitment. Compensation structures vary due to economic, regulatory, and cultural factors. In the U.S., compensation is typically high and performance-based, while in Europe, the focus is on stability. In Croatia, managerial compensation is lower but includes variable bonuses. The study provides an overview of modern practices in managerial contracts and compensation, emphasizing the need to adapt compensation strategies to achieve optimal business results and main tain competitiveness.