CEOs Get Merger Bonus When Selling Firms Cheaply

March 25, 2013

In about one in every four deals, the CEO of an acquired firm is awarded a merger bonus. Also, target shareholders receive inferior premiums when their firms are sold, while their CEOs received a merger bonus.

Those are two findings from a study that examined more than 949 merger and acquisition offers that occurred in the U. S. between 1999 and 2009.