ABSTRACT
How do M&A activities and their characteristics influence the postacquisition determination of executive compensation in acquiring firms? Based on our review of the relevant literature, two major topics of research could be delineated within this stream. The vast majority of studies focused on advancing the current knowledge on the first topic, which examines whether acquirers’ returns and the merger-induced growth in corporate size are associated with the magnitude and composition of managerial pay packages following M&A transactions (Topic E1 in Figure 3.3). The second, less popular topic of inquiry is dedicated to the analysis of how the monetary level and the incentive structuring of executive compensation packets in acquiring companies are influenced by two transactional characteristics, namely the control premium and the mode of payment used to finance the acquisition (Topic E2 in Figure 3.3).
