Multinationality, CEO compensation, and corporate governance: some empirical evidence
Abstract
Looks at previous research on the differences between multinational corporations (MNCs) and domestic corporations (DCs) and the theories underlying them, relating the ideas to optimal compensation packages for managers. Examines a sample of 724 MNCs and US domestic firms to compare the degree of alignment of their chief executive officer compensation packages and finds that average compensation changes for every $1,000 change in equity value are $33 for DCs and only $12 for MNCs. Analyses further to find out why and suggests that it is due to the higher‐valued investment opportunities of MNCs and differences in their corporate governance structures.
Keywords
Citation
Lippert, R.L. and Rahman, M. (1999), "Multinationality, CEO compensation, and corporate governance: some empirical evidence", Managerial Finance, Vol. 25 No. 10, pp. 1-12. https://doi.org/10.1108/03074359910766181
Publisher
:MCB UP Ltd
Copyright © 1999, MCB UP Limited