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Foreign Experience and CEO Compensation

Conyon, Martin James and Hass, Lars Helge and Vergauwe, Skralan Nancy and Zhang, Zhifang (2018) Foreign Experience and CEO Compensation. Journal of Corporate Finance. ISSN 0929-1199

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    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.

    Item Type: Journal Article
    Journal or Publication Title: Journal of Corporate Finance
    Additional Information: 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, ??, ?, 2018 DOI: 10.1016/j.jcorpfin.2017.12.016
    Uncontrolled Keywords: Foreign experience ; corporate governance ; executive compensation ; international business
    Subjects:
    Departments: Lancaster University Management School > Accounting & Finance
    ID Code: 89441
    Deposited By: ep_importer_pure
    Deposited On: 03 Jan 2018 13:26
    Refereed?: Yes
    Published?: Published
    Last Modified: 11 Apr 2018 04:08
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/89441

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