CEO Compensation from M&As in Australia
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 meas...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
Wiley-Blackwell Publishing Ltd.
2012
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| Online Access: | http://hdl.handle.net/10453/23302 http://hdl.handle.net/20.500.11937/38273 |
| _version_ | 1848755275666817024 |
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| author | Bugeja, M. da Silva Rosa, R. Duong, Lien Izan, H. |
| author_facet | Bugeja, M. da Silva Rosa, R. Duong, Lien Izan, H. |
| author_sort | Bugeja, M. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T08:53:43Z |
| format | Journal Article |
| id | curtin-20.500.11937-38273 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:53:43Z |
| publishDate | 2012 |
| publisher | Wiley-Blackwell Publishing Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-382732017-01-30T14:16:17Z CEO Compensation from M&As in Australia Bugeja, M. da Silva Rosa, R. Duong, Lien Izan, H. 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. 2012 Journal Article http://hdl.handle.net/20.500.11937/38273 http://hdl.handle.net/10453/23302 Wiley-Blackwell Publishing Ltd. restricted |
| spellingShingle | Bugeja, M. da Silva Rosa, R. Duong, Lien Izan, H. CEO Compensation from M&As in Australia |
| title | CEO Compensation from M&As in Australia |
| title_full | CEO Compensation from M&As in Australia |
| title_fullStr | CEO Compensation from M&As in Australia |
| title_full_unstemmed | CEO Compensation from M&As in Australia |
| title_short | CEO Compensation from M&As in Australia |
| title_sort | ceo compensation from m&as in australia |
| url | http://hdl.handle.net/10453/23302 http://hdl.handle.net/20.500.11937/38273 |