What is the impact of mergers and acquisitions on CEO compensation? / Lucas LORIN / 2020

Titre : What is the impact of mergers and acquisitions on CEO compensation? Type de document : Mémoire Auteurs : Lucas LORIN, Auteur Année de publication : 2020 Importance : 35 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management FUSION ACQUISITION ; REMUNERATION ; MANAGER Résumé : Mergers and acquisitions is a sector that fascinates enormously, with many students wishing to pursue a career in this elitist environment. The US market is a very buoyant market, in fact 2019 was the fourth highest year in its history in terms of the cumulative value of M&A activity. The US market faring much better than the European market.CEO compensation is a disturbing topic, often criticized for its uncorrelated relationship with employee salaries. This seminar paper discusses the impact of mergers and acquisitions on CEO compensation. Having done an internship in an M&A firm specialized in IT I decided to conduct my seminar paper on the ten companies with the largest market capitalizations in the US in this field.The methodology is the following: a literature review to learn about the different theories on CEO compensation and M&A, followed by several correlation tests and linear regression tests to correlate different financial aggregates with CEO compensation.After having studied 10 companies between 2008 and 2018, having completed 923 M&A deals, I observe that M&A transactions have an impact on the balance sheet via long-term investments (equity investments) but also on the income statement (turnover) M&A transactions therefore have a positive impact on the remuneration of the CEO, if we refer to the various theories of the last few decades. On the other hand, I have not been able to find a clear relationship between mergers and acquisitions and variable compensation (bonuses and stock options), so it would seem that mergers and acquisitions do not bring direct benefits to the CEO, but rather benefits to the company itself through its turnover. On the other hand, a comparison of the averages of bonuses, stock options and long-term investment of each company over the period shows a positive correlation between the variable part of the remuneration and M&A deals. Programme : PGE-Reims Spécialisation : Finance d’Entreprise - Corporate Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=529786