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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26602
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| Title: | What’s In It For Me? CEOs Whose Firms Are Acquired |
| Authors: | Hartzell, Jay
Ofek, Eli
Yermack, David |
| Issue Date: | May-2001 |
| Series/Report no.: | FIN-01-049 |
| Abstract: | We study benefits received by target company CEOs in completed mergers
and acquisitions. These executives obtain wealth increases with a median
of $4 to $5 million and a mean of $8 to $11 million, roughly in line
with the permanent income streams that they sacrifice. CEOs receive
lower financial gains from those transactions in which they become
executives of the buyer, suggesting that tradeoffs exist between the
financial and career-related benefits they extract. We find very high
rates of turnover both at the time of the merger and, for those
executives who stay, for several years post-merger. Regression estimates
suggest that target shareholders receive lower acquisition premia in
transactions that involve extraordinary personal treatment of the CEO. |
| URI: | http://hdl.handle.net/2451/26602 |
| Appears in Collections: | Economics Working Papers
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