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Wharton-SMU Research Centre
Guest Speaker:
Martin J. Conyon
Assistant Professor of Management, The Wharton School, University of Pennsylvania
Date & Venue:
Date: 26 April 2007, Thursday
Time: 4pm-5.30pm
Networked Seminar Room 1.2, Level 1, Lee Kong Chian School of Business, 50 Stamford Road, Singapore 178899
(Location Map)
Topic:
Abstract:
The paper investigates the compensation received by executives who are also the founders of their firms. The paper uses data from about 3000 publicly traded US firms over the years 2003 to 2005. It finds that on average founder-CEOs earn significantly less than non-founder CEOs (by approximately 25%). The wage-discount of CEO founders is offset by wealth effects. Founder CEOs have significantly greater wealth compared to non-founders (by approximately 80%), which more than compensates them for the loss in current per-period earnings. In addition, the findings are robust to econometric strategies. Using propensity score matching methods to evaluate the causal effect of founders on compensation, the paper also shows that founder current compensation is less than non-founders but their wealth is significantly greater. The evidence is consistent with wealth-contracting agency models.
Registration:
This is a free seminar. Admission is on first-come-first-served. Please register early to avoid disappointment.
To register, please click here
Enquiries:
Ms. Lim Lih Yeng
Email: lylim@smu.edu.sg, Tel: 6828-0197
Ms. Priscilla Cheng
Email: priscillacheng@smu.edu.sg, Tel: 6828-0383
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