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CEO Compensation among Firms Controlled by Large Shareholders: Evidence from Emerging Markets

Author

Listed:
  • Francisco Gallego

    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

  • Borja Larraín

Abstract

Using a novel data base for three emerging markets, we find that the type of large shareholder matters for CEO compensation. In particular, we find a compensation premium of about 30 log points for professional (not controller-related) CEOs working in firms controlled by a family compared to firms controlled by other large shareholders. The premium cannot be explained away by standard firm characteristics, observable executive skills (e.g., education or tenure), or the compensation of the CEO in herformer job. The premium comes mostly from family firms with absent founders and when sons are involved.

Suggested Citation

  • Francisco Gallego & Borja Larraín, 2010. "CEO Compensation among Firms Controlled by Large Shareholders: Evidence from Emerging Markets," Documentos de Trabajo 379, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:379
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    References listed on IDEAS

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    More about this item

    Keywords

    CEO compensation; large shareholders; family firms; emerging markets;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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