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Family Control and Executive Compensation

Author

Listed:
  • Palmberg, Johanna

    () (The Ratio Institute)

Abstract

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.

Suggested Citation

  • Palmberg, Johanna, 2012. "Family Control and Executive Compensation," Ratio Working Papers 186, The Ratio Institute.
  • Handle: RePEc:hhs:ratioi:0186
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    File URL: http://ratio.se/app/uploads/2014/11/jp_executive-compensation_186.pdf
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    References listed on IDEAS

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    Cited by:

    1. Johanna Palmberg, 2015. "The performance effect of corporate board of directors," European Journal of Law and Economics, Springer, vol. 40(2), pages 273-292, October.
    2. Palmberg, Johanna, 2012. "The Performance Effects of Corporate Board of Directors," Ratio Working Papers 187, The Ratio Institute.

    More about this item

    Keywords

    Corporate governance; executive compensation; family ownership;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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