%0 Journal Article
%T Ownership Concentration, Top Management and Board Compensation
%A Marcos Barbosa Pinto
%A Ricardo Pereira Camara Leal
%J Revista de Administra£¿£¿o Contemporanea
%D 2013
%I ANPAD - Associa??o Nacional dos Programas de P¨®s-gradua??o em Administra??o
%X The degree of ownership concentration may influence executive and board compensation (Bebchuk & Fried, 2003). This article analyzes this relationship. Detailed information about top management and board compensation became available starting in 2010 through new Securities Commission filings. Linear regression models applied to a sample of 315 Brazilian companies traded on the national exchange indicate a negative and statistically significant economic correlation between executive compensation and the degree of ownership concentration. Ceteris paribus, companies with a lower degree of ownership concentration pay higher compensation to top executives. Family controlled companies pay more to their chief executive, but not to the managerial team as a whole, and the compensation of directors increases with a greater proportion of control group members or their relatives on the board. There was support for the Managerial Power Hypothesis in companies with a lower degree of ownership concentration and for the extraction of private benefits in companies where it is greater.
%K executive compensation
%K ownership concentration
%K corporate governance
%K agency costs
%K managerial power hypothesis.
%U http://www.anpad.org.br/periodicos/arq_pdf/a_1394.pdf