Does Foreign Experience Influence Executive Compensation in Emerging Markets?

ABSTRACT

This article examines the effects of foreign experience on the remuneration policy of companies listed in an emerging market. Applying regressions by GMM-Sys method in 230 Brazilian firms between 2010 and 2018, we find that an international academic experience cause executives to receive lower salaries. However, companies valued the experience of working abroad with more generous compensation. These relationships are consistent for total, base, variable, stock and option compensation and direct and indirect benefits, even when we moderate by the executive´s tenure and age.

KEYWORDS:

• Executive
• compensation
• foreign experience

JEL:

• G30
• G34
• M12
• N26

Disclosure Statement

No potential conflict of interest was reported by the authors.

Supplementary Material

Supplemental data for this article can be accessed online at https://doi.org/10.1080/1540496X.2022.2164463