Executive Compensation Contracts and Ownership Structure
2010 (English)Conference paper (Refereed)
We study executive compensation packages and ownership structures for a sample of firms listed on the Stockholm Stock Exchange over the period 1999 to 2008. The basic question we raise is whether strong CEOs can set their own salaries and bonuses given the composition of group management and institutional ownership. With the use of exclusive ultimate ownership records we can identify the relationship between ownership and executive compensation. Collectively, we find a positive relationship between strong CEOs and compensation. Moreover, compensation is related to the composition of ownership and breadth of ownership. Firms with high foreign institutional ownership are associated with higher compensation to the CEO. These results affect the possibility of an all European compensation strategy.
Place, publisher, year, edition, pages
Economics and Business Social Sciences
Research subject Business Economics (HGO); Business Studies
IdentifiersURN: urn:nbn:se:uu:diva-197283OAI: oai:DiVA.org:uu-197283DiVA: diva2:616021
12th Annual SNEE (Swedish Network for European Economic Research) Conference 18-21 May, 2010 Mölle, Sweden