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
Accepted author manuscript, 911 KB, PDF document
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Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
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 -