Acquisition experience and director remuneration

Addis Birhanu, Philipp Geiler, Luc Renneboog, Y. Zhao

Research output: Contribution to journalArticleScientificpeer-review


We investigate whether acquisition experience of executive and non-executive directors is priced in their remuneration contracts. Acquisition experience generates a contractual premium, and the relative size of this premium is higher for non-executive directors than for executives. Only a director’s track record related to past successful acquisitions is priced. Acquisition experience of a director is not remunerated if this type of experience is already abundantly present in the firm through the firm’s past acquisition record (substitution effect). We verify the results by examining potential endogeneity concerns, by analyzing a broad set of measures of acquisition experience (such as industry-specific, broad or international experience, experience on a target’s board), and by ruling out alternative explanations (such as a director’s general skills level or reputation, the CEO’s power and delegation attitude, and the firm’s corporate governance quality).
Original languageEnglish
Article number101356
JournalJournal of International Financial Markets Institutions & Money
Publication statusPublished - Nov 2021


Dive into the research topics of 'Acquisition experience and director remuneration'. Together they form a unique fingerprint.

Cite this