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Corporate Governance, Excess Control, Multiple Large Share-Holders, CEO Compensation, France
The objective of this study is to examine the relation between complex ownership structures and managerial compensation. More specifically, we examine the impact of the owner-managers excess control and the presence of multiple large shareholders (MLS) on the owner-managers compensation. Using a sample of French publicly listed firms, the results reveal several important points. First, the owner-managers compensation increases with the owner-managers excess control. This finding indicates that managers use their power to increase their pay, hence expropriating minority shareholders. Second, the presence of MLS decreases managerial opportunism and prevents owner-managers from diverting corporate resources for their own benefit. Hence, MLS play an important monitoring role.