| Author: | Guest, P.M. |
| Title: | The impact of mergers and acquisitions on executive pay in the United Kingdom |
| Journal: | Economica
2009 : FEB, VOL. 76:301, p. 149-175 |
| Index terms: | mergers chief executive officers executive remuneration pay United Kingdom |
| Language: | eng |
| Abstract: | This article investigates the impact of acquisitions by UK acquirers on executive pay. The sample shows a significant transitory pay increase. Although initial cross-border acquisitions result in higher pay, pay changes are not affected by target nationality or organizational form. Pay increases are higher following acquisitions of targets with high pay. It is shown that CEOs are rewarder equally for bad and good acquisitions. Those who are well rewarded are more likely to re-acquire. Yet bad acquisitions do not increase CEO wealth because CEO shareholding value declines. Acquiring firms' strength of corporate governance does not affect the pay impacts. |
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