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Family Control and Executive Compensation

  • Palmberg, Johanna

    ()

    (The Ratio Institute)

This paper examines the effect of family ownership and control on executive compensation in listed firms during the period 2003-2008. The descriptive statistics show that CEOs in non-family-controlled firms have a significantly higher share of variable compensation than CEOs in family-controlled firms, they also receive remuneration in stock options relatively more often. The econometric analysis shows that family control and ownership concentration reduce CEO compensation whereas multiple-class shares increase the level of compensation. In line with the findings of previous research, firm size and performance are positively related to CEO compensation.

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File URL: http://ratio.se/app/uploads/2014/11/jp_executive-compensation_186.pdf
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Paper provided by The Ratio Institute in its series Ratio Working Papers with number 186.

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Length: 25 pages
Date of creation: 28 Feb 2012
Date of revision:
Handle: RePEc:hhs:ratioi:0186
Contact details of provider: Postal:
The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

Phone: 08-441 59 00
Fax: 08-441 59 29
Web page: http://www.ratio.se/
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  19. Cheung, Yan-Leung & Stouraitis, Aris & Wong, Anita W.S., 2005. "Ownership concentration and executive compensation in closely held firms: Evidence from Hong Kong," Journal of Empirical Finance, Elsevier, vol. 12(4), pages 511-532, September.
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