CEO Compensation from M&As in Australia
Abstract
We investigate Australian CEO compensation following mergers and acquisitions (M&As). We find CEOs of acquiring firms receive higher compensation in the year of M&A completion and one year after. We also find a positive correlation between CEO compensation and firm performance, and some measures of CEO effort and skill in completing the deal. However, CEOs of bidding firms receive a lower bonus and other compensation if they wield more managerial power (that is, if the CEO sits on the nominating committee, has a higher level of share ownership, or the board has more executive directors). This result is in sharp contrast to the US where compensation is influenced by CEO power. Overall our findings are more consistent with the predictions of the incentive alignment theory rather than the managerial power theory.
Citation
Source Title
Additional URLs
ISSN
School
Collection
Related items
Showing items related by title, author, creator and subject.
-
Brijnath, Bianca; Mazza, D.; Kosny, A.; Bunzli, S.; Singh, N.; Ruseckaite, R.; Collie, A. (2016)Objective: The reasons that doctors may refuse or be reluctant to treat have not been widely explored in the medical literature. To understand the ethical implications of reluctance to treat there is a need to recognise ...
-
Tuthill, John D. (2000)This thesis reports original work on digital compensation for frequency dependent transfer characteristics and errors in digital PAM/CPFSK (Pulse Amplitude Modulation/Continuous Phase Frequency Shift Keying) quadrature ...
-
Guthrie, Robert (2002)This exegesis describes and interprets a body of work produced by the writer from 1991 until 2001. This work includes three State Government reports and a commentary on the Workers Compensation and Rehabilitation Act 1981 ...