Acquisition experience and director remuneration

We investigate whether acquisition experience of executive and non-executive directors is priced in their remuneration contracts. Acquisition generates a contractual premium, the relative size this premium higher for than executives. Only director’s track record related to past successful acquisitions priced. director not remunerated if type already abundantly present firm through firm’s (substitution effect). verify results by examining potential endogeneity concerns, analyzing broad set measures (such as industry-specific, or international experience, on target’s board), ruling out alternative explanations general skills level reputation, CEO’s power delegation attitude, corporate governance quality).