Do firms controlled by private equity pay higher executive compensation?

Abstract

This study investigates executive compensation on Brazilian companies controlled by private equity funds. Although there is a vast literature on executive compensation in many countries, there are only a few studies on executive compensation in private-equity-controlled companies in Brazil. Our analysis of 657 listed companies in Brazil from 2008 to 2011 show that private-equity-backed firms have higher individual and variable compensation, and better corporate governance standards.