Globalization and executive compensation

This paper finds that globalization is contributing to the rapid increase in executive compensation. Employing comprehensive data on top executives at major U.S. companies, we show their compensation increasing with exports and foreign direct investment, as well firm size technology. Exogenous export shocks unrelated managerial decisions also compensation, there little evidence this due market returns talent. We do find primarily affect discretionary forms of more powerful firms poor corporate governance, one would expect if has enhanced rent-capture opportunities. Overall, these results indicate played a central role growth inequality than previously thought.