This paper examines the impact of acquisitions by UK acquirers on executive pay. The overall sample
shows a significant transitory pay increase. Pay changes are not affected by target nationality or
organizational form, although initial cross-border acquisitions result in higher pay. Pay increases are
higher following acquisitions of targets with high pay, but not high-pay countries. CEOs are rewarded
equally for bad and good acquisitions, and those well rewarded are more likely to re-acquire. However,
bad acquisitions do not increase CEO wealth because CEO shareholding value declines. Pay impacts are
not affected by the acquiring firms’ strength of corporate governance