Executive directors' pay, networks and operating performance: The influence of ownership structure

摘要

This paper examines how ownership structure affects the director networking compensation relationship. Furthermore, we measure the subsequent impact of this relationship on future operating performance of firms. As in previous research, our study also finds empirical evidence suggesting that higher network activity of executive directors conveys to larger compensation figures. This excess pay has an impact on future operating performance. Our data set of Spanish listed companies, with high average ownership concentration, show that the network related higher compensation for firms with dispersed ownership leads to subsequent negative operating performance.