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    Rights statement: This is the author’s version of a work that was accepted for publication in Journal of Corporate Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Corporate Finance, 57, 2019 DOI: 10.1016/j.jcorpfin.2017.12.016

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Foreign Experience and CEO Compensation

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Foreign Experience and CEO Compensation. / Conyon, Martin James; Hass, Lars Helge; Vergauwe, Skralan Nancy; Zhang, Zhifang.

In: Journal of Corporate Finance, Vol. 57, 01.08.2019, p. 102-121.

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@article{efca5e944dc34a16be0fed8a2c3fe266,
title = "Foreign Experience and CEO Compensation",
abstract = "This paper investigates the relationship between a CEO’s foreign experience and CEO compensation. Our analysis is based on the constituent firms of the UK FTSE 350 index from 1999 to 2015. We find that foreign CEOs and national CEOs with foreign working experience receive significantly higher levels of total compensation compared to similar UK CEOs without such characteristics. The results are robust to the endogenous CEO selection using propensity score matching methods, as well as other modelling approaches. Our results show that pay premiums are attributable to the specialized foreign expertise and foreign networks of CEOs, which stem from foreign experience rather than broader general managerial skills.",
keywords = "Foreign experience, corporate governance, executive compensation, international business",
author = "Conyon, {Martin James} and Hass, {Lars Helge} and Vergauwe, {Skralan Nancy} and Zhifang Zhang",
note = "This is the author’s version of a work that was accepted for publication in Journal of Corporate Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Corporate Finance, 57, 2019 DOI: 10.1016/j.jcorpfin.2017.12.016",
year = "2019",
month = "8",
day = "1",
doi = "10.1016/j.jcorpfin.2017.12.016",
language = "English",
volume = "57",
pages = "102--121",
journal = "Journal of Corporate Finance",
issn = "0929-1199",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Foreign Experience and CEO Compensation

AU - Conyon, Martin James

AU - Hass, Lars Helge

AU - Vergauwe, Skralan Nancy

AU - Zhang, Zhifang

N1 - This is the author’s version of a work that was accepted for publication in Journal of Corporate Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Corporate Finance, 57, 2019 DOI: 10.1016/j.jcorpfin.2017.12.016

PY - 2019/8/1

Y1 - 2019/8/1

N2 - This paper investigates the relationship between a CEO’s foreign experience and CEO compensation. Our analysis is based on the constituent firms of the UK FTSE 350 index from 1999 to 2015. We find that foreign CEOs and national CEOs with foreign working experience receive significantly higher levels of total compensation compared to similar UK CEOs without such characteristics. The results are robust to the endogenous CEO selection using propensity score matching methods, as well as other modelling approaches. Our results show that pay premiums are attributable to the specialized foreign expertise and foreign networks of CEOs, which stem from foreign experience rather than broader general managerial skills.

AB - This paper investigates the relationship between a CEO’s foreign experience and CEO compensation. Our analysis is based on the constituent firms of the UK FTSE 350 index from 1999 to 2015. We find that foreign CEOs and national CEOs with foreign working experience receive significantly higher levels of total compensation compared to similar UK CEOs without such characteristics. The results are robust to the endogenous CEO selection using propensity score matching methods, as well as other modelling approaches. Our results show that pay premiums are attributable to the specialized foreign expertise and foreign networks of CEOs, which stem from foreign experience rather than broader general managerial skills.

KW - Foreign experience

KW - corporate governance

KW - executive compensation

KW - international business

U2 - 10.1016/j.jcorpfin.2017.12.016

DO - 10.1016/j.jcorpfin.2017.12.016

M3 - Journal article

VL - 57

SP - 102

EP - 121

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

SN - 0929-1199

ER -