CEO compensation and large shareholders: Evidence from emerging markets

摘要

Gallego, Francisco, and Larrain, Borja-CEO compensation and large shareholders: Evidence from emerging markets Using a novel data base for three emerging markets we study large shareholders and their relationship with professional managers. This is important to understand wage inequality and returns to high-level human capital since concentrated ownership is prevalent in developing countries. 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 her former job. The premium comes mostly from family firms with absent founders and when sons are involved Journal of Comparative Economics 40 (4) (2012) 621-642. Pontificia Universidad Catolica de Chile, Instituto de Economia, Avda. Vicuna Mackenna 4860, Macul, Santiago, Chile; Pontificia Universidad Catolica de Chile, Escuela de Adminis-tracion and Finance UC, Avda. Vicuna Mackenna 4860, Macul, Santiago, Chile.