Banking Mergers and Acquisitions’ Performance and Executive Compensation in Europe

• Main Authors: F. Arnaboldi, A. Rym
• Other Authors: L. Oxelheim, C. Wilborg
• Format: Conference Object
• Language: English
• Published: Emerald 2008
• Subjects: Bank; Corporate Governance; Executive Compensation; Merger; Acquisition; Settore SECS-P/11 - Economia degli Intermediari Finanziari; Norway; Iceland
• Online Access: http://hdl.handle.net/2434/52823

In this paper, we investigate whether managerial power and experience of executives influence M&A performance and whether there is a link between M&A performance and executive compensation. The aim is to understand if any causality relationship exists among executives power, bank performance and their compensation in Europe. To assess banking performance and CEO compensation we use OLS regression model on 52 bank–to-bank M&A from EU15 countries plus Norway and Iceland. We find a positive significant relationship between managerial power and post deal bank performance.