Executive compensation of immigrant-founder firms in the USA

Abstract

Purpose The purpose of this paper is to examine CEO compensation in immigrant-founder firms vs CEO compensation in non-immigrant-founder firms. Design/methodology/approach Univariate and multi-variate tests are implemented. CEO compensation is designed as a function of the origin of a firm’s founder (immigrant or native), executive characteristics and firm characteristics with firm and year fixed effect regressions. CEO compensation is measured with cash pay, equity-based pay and total compensation. Findings CEOs of immigrant-founder firms receive higher equity-based compensation and higher total pay than CEOs of non-immigrant-founder firms and the levels of their equity-based and total compensation are contingent upon their stock ownership. CEOs in high-growth immigrant-founder firms receive higher stock-based pay than their counterparts in non-immigrant-founder firms. Immigrant-founder family firms compensate their CEOs with higher equity-based pay than immigrant-founder non-family firms. Practical implications The paper provides some explanations on the success of immigrant-founder firms. CEO compensation designs in immigrant-founder firms can be adopted in other firms. Social implications The paper provides some rationale for immigration legislation to encourage the talented to come to the USA and start their business in the USA. Originality/value This paper is the first to study executive compensation practice in immigrant-founder firms. The findings provide some practical and policy implications on immigration reform.

Military veterans on the board and executive compensation

“…Following prior literature, our vector of control variables (italicXi,t-1) includes determinants of CEO compensation as well as board and ownership structure variables (e.g. Core et al , 1999; Hsieh et al , 2019; Hwang and Kim, 2009; Lin et al , 2019). These control variables include Military CEO, E-index, CEO Tenure, CEO Ownership, CEO=Chairman, Outside Director Ownership, Board Size, and Female Director, Independent director%, Firm Size, Stock Return and ROA.…”

Motivasi Manajer dalam Melakukan Manajemen Laba Dikaji dalam Pandangan Islam

“…Peningkatan kompensasi manajer merupakan salah satu bentuk usaha peningkatan nilai perusahaan. Faktor gender manajer tidak mempengaruhi dalam besaran kompensasi yang didapatkan oleh manajer [18].…”