Show me the money! “A comparative study on the influence of board structure on the relation between board control and CEO compensation in the Netherlands, UK and USA”

(1)

Show me the money!

“A comparative study on the influence of board structure on the relation between board

control and CEO compensation in the Netherlands, UK and USA”

University of Groningen

Faculty of Economics & Business

Msc International Business & Management

First supervisor: M.A.G. van Offenbeek

Second supervisor: B.J.W. Pennink

Master Thesis International Business & Management

by

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APPENDIX

APPENDIX 1 – STRUCTURE OVERALL BOARD CONTROL ... 2

APPENDIX 2 – SAMPLE OVERVIEW ... 10

APPENDIX 3 – OUTPUT HYPOTHESIS 1 ... 13

APPENDIX 4 – OUTPUT HYPOTHESIS 2 ... 21

APPENDIX 5 – OUTPUT HYPOTHESIS 3 ... 26

APPENDIX 6 – DESCRIPTIVE STATISTICS ... 31

APPENDIX 7 – FIGURES INTERACTION EFFECT ... 36

APPENDIX 8 – MODERATOR EFFECT ... 42

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APPENDIX 1 – STRUCTURE OVERALL BOARD CONTROL1

Variable 1: NEDs pay*

0 points: The organization has a lower NEDs pay compared with the average NEDs pay

measured

1 point: The organization has a similar NEDs pay compared with the average NEDs pay

measured

2 points: The organization has a higher NEDs pay compared with the average NEDs pay

measured

Variable 2: Meeting frequency**

0 points: The board has less meetings compared with the average of board meetings measured

1 point: The board has a similar frequency of meetings compared with the average of board

meetings measured

2 points: The board has more meetings compared with the average of board meetings measured

Variable 3: Board composition***

0 points: The organization has a lower executives / board ratio compared with the average ratio

measured

1 point: The organization has a similar executives / board ratio compared with the average ratio

measured

2 points: The organization has a higher executives / board ratio compared with the average

ratio measured

Variable 4: NEDs side duties****

0 points: The average NED of the organization has a higher amount of side duties compared

with the average of side duties measured

1 point: The average NED of the organization has a similar amount of side duties compared

with the average of side duties measured

2 points: The average NED of the organization has a lower amount of side duties compared

with the average of side duties measured

1

(4)

Variable 5: Experience by tenure*****

0 points: The NEDs have a shorter average tenure than the CEO

1 point: The NEDs and the CEO have a similar tenure

2 points: The NEDs have a longer average tenure than the CEO

* a margin of 10% is taken into account (5% above the average and 5% beneath the average). This margin is

necessary to keep the division of points realistic, the change that a score will be completely equal to the average

can be made somehow bigger.

** for meeting frequency (MF) the average amount of meetings represents an average score for that variable.

However, the average MF needs to be a whole number since there don’t exist “half meetings”. Therefore, for the

United States the average MF of 4,1 it was decided to make the number round to an average MF of 4. For the

United Kingdom the average MF was characterized by 8,7, leading to an average MF of 9. The Netherlands was

branded by a 7,5. Since this is exactly between 7 and 8, I decided to consider the 7 as well as the 8 to be

represented as the average MF for the Netherlands.

*** a margin of 10% is taken into account (5% above the average and 5% beneath the average). This margin is

necessary to keep the division of points realistic, the change that a score will be completely equal to the average

can be made somehow bigger.

**** a margin of 10% is taken into account (5% above the average and 5% beneath the average). This margin is

necessary to keep the division of points realistic, the change that a score will be completely equal to the average

can be made somehow bigger.

***** no margin is practiced since this variable consists out of two independent changing values leaving no

(5)

Structure overall board control (continued) – The Netherlands

CEO

Organization NEDs

pay

MF BC

NEDs

SD EXP

Total

1. D. Shephard

Aegon

1 0

0 2 2

0,5

2. B. Noteboom

Randstad

1 0

1 0 2

0,4

3. J. v/d Veer

Royal Dutch Shell

0 1

0 2 0

0,3

4. M. Tilmant

ING

0 1

2 0 2

0,5

5. P. Cescau

Unilever

0 1

0 2 2

0,5

6. JP. Votron

Fortis

0 1

2 0 2

0,5

7. A. Moberg

Ahold

0 0

0 0 0

0

8. K. Wester

Fugro

2 0

2 0 2

0,6

9. C. Davis

Reed Elsevier

0 n.a.

2 2 0

0,5

10. G. Kleisterlee

Philips

1 0

1 2 0

0,4

11. L. Mittal

Mittal

0 1

0 2 0

0,3

12. W. Dekker

Nutreco

2 0

1 0 0

0,3

13. P. Bakker

TNT

0 2

0 0 0

0,2

14. M. Read

LogicaCMG

0 0

0 2 0

0,2

15. J. Bennink

Numico

2 0

2 2 0

0,6

16. P. Varin

Corus

0 n.a.

1 0 2

0,375

17. R. Groenink

ABN Amro

0 1

1 0 0

0,2

18. N. McKinstry

Wolters

Kluwer

2 1

0 2 0

0,5

19. H. Wijers

Akzo Nobel

0 1

0 0 0

0,1

20. Scheepbouwer

KPN

0 2

2 0 0

0,4

21. JF. Th

Euronext

2 2

1 0 0

0,5

22. D. Keller

SBM Offshore

0 0

2 0 2

0,4

23. I. Schulz

Draka

2 0

0 2 2

0,6

24. K. Wagenaar

Getronics

2 2

1 2 0

0,7

25. B. Heemskerk

Rabobank

n.a. 0 0 0

2 0,4

76. D. van Doorn

Vion Food Group

2 1

2 2 n.a.

0,875

77. G.Cerfontaine

Schiphol

2 0

0 1 0

0,3

78. A. Veenhof

Wessanen

2 0

2 2 0

0,6

79. W. Cramer

Friesland Bank

2 n.a.

1 n.a. n.a.

0,75

80. A. de Taeye

Tele Atlas

2 1

2 2 0

0,7

(6)

82. R. Kottman

Ballast Nedam

2 0

2 0 0

0,4

83. H. Noy

Arcadis

2 0

2 0 0

0,4

84. B. Roetert

Schuitema

2 2

2 1 2

0,9

85. D. van Well

Dura Vermeer

2 0

2 n.a. n.a.

0,666

86. H.Hazewinkel

VolkerWessels

2 0

2 2 2

0,8

87. R. Blickman

Besi

2 1

2 2 0

0,7

88. A. Veenman

NS

2 2

0 0 0

0,4

89. C. Mezger

Nedschroef

2 0

0 2 2

0,6

90. R. de Drijver

VanderMoolen

1 2

2 2 2

0,9

91. F. de Moor

Macintosh

2 0

2 2 0

0,6

92. A. Pasman

Grolsch

2 0

1 1 2

0,6

93. A. Swartjes

Telegraaf

2 1

0 2 0

0,5

94. R.v.Gerrevink

Vastned Retail

2 0

2 2 2

0,8

95. F. Geelen

Beter Bed

2 0

0 1 2

0,5

96. H. Goddijn

TomTom

2 0

2 2 0

0,6

97. R. Pickering

LB Icon

n.a. 2 2 0

2 0,75

98. P. Veenema

Kendrion

2 0

2 2 0

0,6

99. S. Thijsen

Grontmij

2 2

2 2 2

1

(7)

Structure overall board control (continued) – The UK

CEO

Organization NEDs

pay

MF BC

NEDs

SD EXP

Total

1. B. Becht

Reckitt Benchiser

0 0

0 1 0

0,1

2. G. Thorley

Punch Taverns

2 2

1 0 2

0,7

3. L. Browne

BP

0 1

0 2 0

0,3

4. S. Fink

Man Group

0 0

0 2 0

0,2

5. J. Rose

Rolls-Royce

1 0

2 0 0

0,3

6. M. Spencer

ICAP

2 0

2 2 0

0,6

7. P. Cox

Int. Power

2 0

2 0 2

0,6

8. F. Chapman

BG

0 0

0 2 0

0,2

9. P. Walsh

Diageo

0 0

0 2 0

0,2

10. C. Goodyear

BHP Billiton

0 0

2 0 2

0,4

11. T. Trahar

Anglo American

0 1

0 0 0

0,1

12. B. Gammel,

Cairn Energy

2 0

2 2 0

0,6

13. JP Garnier

GSK

2 0

0 0 0

0,2

14. P. Walker

Sage

2 1

2 2 0

0,7

15. M. Garber

PartyGaming

0 0

2 2 2

0,6

16. T. Leahy

Tesco

0 0

2 2 0

0,4

17. M. Davis

Xstrata

1 1

0 0 2

0,4

18. F. Goodwin

BS

0 1

1 0 0

0,2

19. D. Brennan

AstraZeneca

2 1

0 0 2

0,5

20. D. Harding

William Hill

2 2

0 0 0

0,4

21. G. Mackay

SAB Miller

n.a. 0 0 2

0 0,25

22. A. Sarin

Vodafone

0 0

0 0 2

0,2

23. T. Duddy

Home Retail

2 0

0 0 0

0,2

24. D. Turner

Brambles Ind.

2 0

0 0 0

0,2

25. M. Sorrell

WPP

2 n.a.

0 0 0

0,25

76. C. Sinclair

Daily Mail

0 0

2 2 0

0,4

77. T. Froggatt

Scottish Newcastle

2 0

0 2 2

0,6

78. M. Emmens

Shire

0 0

0 1 2

0,3

79. P. Varin

Corus

0 2

1 0 2

0,5

80. D. Fischel

Liberty Int.

2 0

0 2 2

0,6

81. I. Ferguson

Tate & Lyle

1 0

1 0 2

0,4

(8)

83. C. Bell

Ladbrokes

2 1

1 2 2

0,8

84. H. Jones

Cable & Wireless

0 0

2 2 2

0,6

85. S. Wolfson

2 1

2 2 0

0,7

86. T. Breedon

Legal & General

2 2

2 2 2

1 87. D. R. Flynn

Rentokil Initial

2 2

0 2 2

0,8

88. C.O'Donnell

Smith Nephew

2 1

0 0 0

0,3

89. J. McAdam

ICI

0 0

0 0 2

0,2

90. N. Carson

Johnson

2 0

2 2 2

0,8

91. L. Emilson

Rexam

2 2

1 1 0

0,5

92. P. Green

UnitedUtilities

2 n.a.

2 2 2

0,875

93. C. Matthews

Severn Trent

2 2

2 2 2

1 94. S.Crawshaw

B&B

2 1

2 2 2

0,9

95. I. Coull

SEGRO

2 2

2 2 0

0,6

96. K.Whiteman

Kelda

2 0

0 0 0

0,4

97. K. Kaura

Vedanta Resources

2 0

2 2 0

0,6

98. P- Pindar

Capita

2 1

2 2 0

0,6

99. M. Biggs

Resolution

2 2

0 0 2

0,6

(9)

Structure overall board control (continued) – The USA

CEO

Organization NEDs

pay

MF BC

NEDs

SD EXP

Total

1. S. Jobs

Apple

n.a. 1 2 2

0 0,625

2. R. Irani

OXI

n.a. 2 0 0

0 0,25

3. B. Diller

IAC

n.a. n.a

0 0

4. W. Folley II

FNF

n.a. 2 0 2

2 0,75

5. J. Yang

Yahoo

n.a. 1 0 2

2 0,625

6. M. Dell

Dell

n.a. 2 2 0

2 0,75

7. A. Mozilo

CFC

n.a. 2 2 0

0 0,5

8. M.Jeffries

ANF

n.a. 1 0 0

0 0,125

9. K. Lewis

BAC

n.a. 0 0 2

0 0,25

10. H. Duques

FDC

n.a. 2 1 0

2 0,625

11. H. Messmer

RHI

n.a. 0 0 2

2 0,5

12. L. Ellison

ORCL

n.a. n.a.

0 0

13. B. Simpson

XTO

n.a. 1 0 2

0 0,375

14. J. Stumpf

WFC

n.a. n.a.

0 0

n.a.

0 15. J. Chambers

CSCO

n.a. 2 1 2

0 0,625

16. G. Engles

DF

n.a. n.a.

1 2

0 0,5

17. L. Frankfort

COH

n.a. 1 2 0

0 0,375

18. J. Moglia

AMTD

n.a. n.a.

2 2

0 0,666

19. J. Dimon

JPM

n.a. n.a.

2 0

2 0,666

20. W. Berkely

BER

n.a. 0 2 2

0 0,5

21. R. Fuld

LEH

n.a. 2 0 0

0 0,25

22. E. Whitacre

AT&T

n.a. 2 1 1

0 0,5

23. R. Ulrich

TGT

n.a. 0 1 2

0 0,375

24. l. Hassey

ATI

n.a. 0 0 2

2 0,5

25. E. Linde

BXP

n.a. n.a.

2 0

0 0,333

76. D. Starks

STJ

n.a. 0 2 2

2 0,75

77. R. Ayer

HIG

n.a. n.a.

0 2

0 0,333

78. S. Bennett

INTU

n.a. 1 2 0

2 0,625

79. A. Mulally

Ford

n.a. 2 2 0

2 0,75

80. M. Hurd

HPQ

n.a. n.a.

2 2

2 0,75

81. M. Dekkers

TMO

n.a. 0 2 2

0 0,5

(10)

83. J. Drosdick

SUN

n.a. 2 2 0

2 0,75

84. C. Ritter

RF

n.a. n.a.

0 2

2 0,666

85. J. Rohr

PNC

n.a. 0 0 2

2 0,5

86.Hammergren MCK

n.a. 2 1 2

0 0,625

87. C. Prince

Citigroup

n.a. 0 2 0

2 0,5

88. D. James

VMC

n.a. 0 2 2

2 0,75

89. R. Sellers

ASN

n.a. n.a.

0 0

2 0,333

90. K. Chenault

AXP

n.a. 2 2 0

2 0,75

91. D. Wolf

CVH

n.a. 0 0 0

2 0,25

92. T. Renyi

BK

n.a. 2 2 2

0 0,75

93. H. McGraw

MHP

n.a. n.a.

0 0

2 0,333

94. R. Logue

STT

n.a. n.a.

0 0

2 0,333

95. P. Jacobs

QCOM

n.a. 1 2 2

2 0,875

96. B. Smith

TSO

n.a. n.a.

2 2

0 0,666

97. J. Gemunder OCR

n.a. 1 1 2

0 0,5

98. M. Frissora

HTZ

n.a. n.a.

1 2

2 0,833

99. R. Sargent

SPLS

n.a. n.a.

0 2

2 0,666

(11)

APPENDIX 2 – SAMPLE OVERVIEW – A. The Netherlands

CEO

Company

Total Cash

Pay ($)

Long Term

Pay ($)

Board

Structure

1. D. Shephard

Aegon 7.982.572

0

2

2. B. Noteboom

Randstad 1.925.571

4.859.948

2

3. J. v/d Veer

Royal Shell

5.051.746 360.533 1

4. M. Tilmant

ING 5.375.761

0

2

5. P. Cescau

Unilever 4.753.596 0

1

6. JP. Votron

Fortis 4.258.377

0

1

7. A. Moberg

Ahold 4.161.596

0

2

8. K. Wester

Fugro 1.585.068

2.371.871

2

9. C. Davis

Reed Elsevier

3.848.350 0 1

10. G. Kleisterlee

Philips 3.639.064 0

2

11. L. Mittal

Mittal 3.507.953

0

1

12. W. Dekker

Nutreco 1.222.969

2.061.033

2

13. P. Bakker

TNT 2.292.543

954.364

2

14. M. Read

LogicaCMG 3.155.985

0

1

15. J. Bennink

Numico 3.123.555 0

2

16. P. Varin

Corus 2.987.845

0

1

17. R. Groenink

ABN Amro

2.836.823 0 2

18. N. McKinstry

Wolters Kluwer

2.745.070 0 2

19. H. Wijers

Akzo Nobel

2.677.700 0 2

20. A. Scheepbouwer

KPN 2.519.705

0

2

21. JF. Th

Euronext 2.368.378 0

2

22. D. Keller

SBM Offshore

1.403.372 483.404 2

23. I. Schulz

Draka 2.277.503

0

2

24. K. Wagenaar

Getronics 2.101.537 0

2

25. B. Heemskerk

Rabobank 2.052.936

0

2

76. D. van Doorn

Vion Food

Group 877.630

0

2

77. G. Cerfontaine

Schiphol 871.943 0

2

78. A. Veenhof

Wessanen 848.408 0

2

79. W. Cramer

Friesland Bank

838.352 0 2

80. A. de Taeye

Tele Atlas

831.202 0 2

81. P. Vermeulen

BNG 816.985

0

2

82. R. Kottman

Ballast Nedam

813.214 0 2

83. H. Noy

Arcadis 805.673

0

2

84. B. Roetert

Schuitema 793.732 0

2

85. D. van Well

Dura Vermeer

790.904 0 2

86. H. Hazewinkel

VolkerWessels 789.524

0

2

87. R. Blickman

Besi 789.390

0

2

88. A. Veenman

NS 784.096

0

2

89. C. Mezger

Nedschroef 774.694 0

2

90. R. de Drijver

Van der Moolen

767.584 0 2

91. F. de Moor

Macintosh 750.370 0

2

92. A. Pasman

Grolsch 748.179

0

2

93. A. Swartjes

Telegraaf 745.083 0

2

94. R. van Gerrevink

Vastned Retail

742.828 0 2

95. F. Geelen

Beter Bed

740.377 0 2

96. H. Goddijn

TomTom 740.088 0

2

97. R. Pickering

LB Icon

736.963 0 na

98. P. Veenema

Kendrion 733.527 0

2

99. S. Thijsen

Grontmij 731.516 0

2

(12)

Sample Overview (continued) – B. The UK

CEO

Company

Total Cash

Pay ($)

Long Term

Pay ($)

Board

Structure

1. B. Becht

Reckitt Benchiser

7.161.417 33.572.715 1

2. G. Thorley

Punch Taverns

1.375.848 19.420.479 1

3. L. Browne

BP

4.658.702 14.934.706 1

4. S. Fink

Man Group

14.040.656 0 1

5. J. Rose, Sir

Rolls-Royce

2.511.937 10.333.613 1

6. M. Spencer

ICAP

11.274.099 1.287.635 1

7. P. Cox

International Power

4.529.798 5.548.049 1

8. F. Chapman

BG

3.330.352 6.485.036 1

9. P. Walsh

Diageo

4.437.386 4.974.239 1

10. C. Goodyear

BHP Billiton

4.349.296 4.952.425 1

11. T. Trahar

Anglo American

3.627.738 5.585.647 1

12. B. Gammel, Sir

Cairn Energy

1.819.800 7.201.191 1

13. JP Garnier, Dr

GlaxoSmithKline

5.396.322 3.493.800 1

14. P. Walker

Sage

2.598.619 6.047.106 1

15. M. Garber

PartyGaming

2.015.213 6.609.604 1

16. T. Leahy, Sir

Tesco

6.978.831 1.538.146 1

17. M. Davis

Xstrata

7.885.345 0 1

18. F. Goodwin, Sir

Bank of Scotland

7.369.823 0 1

19. D. Brennan

AstraZeneca

4.911.371 2.234.200 1

20. D. Harding

William Hill

1.851.692 5.259.540 1

21. G. Mackay

SAB Miller

4.647.695 2.434.502 1

22. A. Sarin

Vodafone

5.992.131 1.021.253 1

23. T. Duddy

Home Retail

3.306.830 3.258.723 1

24. D. Turner

Brambles Industries

6.416.253 0 1

25. M. Sorrell, Sir

WPP

6.075.124 141.268 1

76. C. Sinclair

Daily Mail and

General Trust

2.535.912

571.549

1 77. T. Froggatt

Scottish Newcastle

3.077.541 0 1

78. M. Emmens

Shire

2.991.779 0 1

79. P. Varin

Corus

2.954.303 0 1

80. D. Fischel

Liberty International

1.769.377 1.176.663 1

81. I. Ferguson, CBE

Tate & Lyle

2.932.437 0 1

82. I. Marchant

Scottish & Southern

2.910.715 0 1

83. C. Bell

Ladbrokes

1.475.683 1.399.824 1

84. H. Jones

Cable & Wireless

2.803.887 0 1

85. S. Wolfson

1.967.868 722.966 1

86. T. Breedon

Legal & General

2.644.726 0 1

87. D. R. Flynn

Rentokil Initial

2.456.608 0 1

88. C. O'Donnell, Sir

Smith & Nephew

2.454.763 0 1

89. Dr. J. McAdam

Imperial Chemical

Industries 2.406.812 0

1 90. N. Carson

Johnson Matthey

1.991.844 404.164 1

91. L. Emilson

Rexam

1.143.466 1.175.959 1

92. P. Green

United Utilities

2.219.246 0 1

93. C. Matthews

Severn Trent

2.216.983 0 1

94. S. Crawshaw

Bradford & Bingley

1.928.977 236.764 1

95. I. Coull

SEGRO

1.674.624 327.703 1

96. K. Whiteman

Kelda

1.723.076 200.503 1

97. K. Kaura

Vedanta Resources

759.851 935.060 1

98. P- Pindar

Capita

1.543.080 77.909 1

99. M. Biggs

Resolution

1.521.548 0 1

(13)

Sample Overview (continued) – C. The USA

CEO

Company

Total Cash

Pay ($)

Long Term

Pay ($)

Board

Structure

1. S. Jobs

Apple

0 646.600.000 1

2. R. Irani

OXI

4.100.000 317.540.000 1

3. B. Diller

IAC

3.980.000 291.160.000 1

4. W. Folley II

FNF

22.000.000 157.550.000 1

5. J. Yang

Yahoo

600.000 173.600.000 1

6. M. Dell

Dell

2.760.000 150.470.000 1

7. A. Mozilo

CFC

22.430.000 119.750.000 1

8. M.Jeffries

ANF

4.080.000 110.550.000 1

9. K. Lewis

BAC

8.000.000 91.800.000 1

10. H. Duques

FDC

1.900.000 96.310.000 1

11. H. Messmer

RHI

6.300.000 67.960.000 1

12. L. Ellison

ORCL

7.410.000 65.100.000 1

13. B. Simpson

XTO

32.210.000 40.070.000 1

14. J. Stumpf

WFC

9.500.000 62.550.000 1

15. J. Chambers

CSCO

1.650.000 69.680.000 1

16. G. Engles

DF

3.420.000 62.660.000 1

17. L. Frankfort

COH

2.900.000 62.960.000 1

18. J. Moglia

AMTD

7.160.000 55.080.000 1

19. J. Dimon

JPM

14.000.000 43.170.000 1

20. W. Berkely

BER

10.500.000 44.100.000 1

21. R. Fuld

LEH

7.000.000 34.650.000 1

22. E. Whitacre

AT&T

8.880.000 40.130.000 1

23. R. Ulrich

TGT

7.790.000 40.310.000 1

24. l. Hassey

ATI

3.800.000 40.440.000 1

25. E. Linde

BXP

2.520.000 39.730.000 1

76. D. Starks

STJ

1.990.000 19.060.000 1

77. R. Ayer

HIG

4.800.000 16.230.000 1

78. S. Bennett

INTU

4.270.000 16.610.000 1

79. A. Mulally

Ford

20.500.000 330.000 1

80. M. Hurd

HPQ

10.020.000 10.310.000 1

81. M. Dekkers

TMO

3.180.000 17.070.000 1

82. D. Smith

LYO

4.250.000 15.890.000 1

83. J. Drosdick

SUN

2.980.000 17.040.000 1

84. C. Ritter

RF

3.790.000 16.170.000 1

85. J. Rohr

PNC

3.800.000 16.100.000 1

86. J. Hammergren

MCK

5.310.000 14.430.000 1

87. C. Prince

Citigroup

14.200.000 5.450.000 1

88. D. James

VMC

4.210.000 15.420.000 1

89. R. Sellers

ASN

2.250.000 17.090.000 1

90. K. Chenault

AXP

7.100.000 12.420.000 1

91. D. Wolf

CVH

2.530.000 16.750.000 1

92. T. Renyi

BK

7.280.000 11.660.000 1

93. H. McGraw

MHP

3.180.000 15.610.000 1

94. R. Logue

STT

6.000.000 12.580.000 1

95. P. Jacobs

QCOM

2.660.000 15.900.000 1

96. B. Smith

TSO

3.370.000 15.190.000 1

97. J. Gemunder

OCR

4.110.000 14.370.000 1

98. M. Frissora

HTZ

4.380.000 14.060.000 1

99. R. Sargent

SPLS

2.590.000 15.700.000 1

(14)

APPENDIX 3 – OUTPUT HYPOTHESIS 1

TABLE 1 - Variables Entered/Removed (b) - THREE COUNTRY SAMPLE - TCP

Model Variables Entered Variables Removed Method 1 BoardComp osition . Stepwise (Criteria: Probability -of-F-to-enter <= ,050, Probability -of-F-to-remove >= ,100). 2 MF(a) . Enter 3 _DSD(a) _{. Enter} 4 EXP(a) . Enter

a All requested variables entered. b Dependent Variable: TCP Ratio %

TABLE 2 - Model Summary - THREE COUNTRY SAMPLE - TCP

Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,325(a) ,105 ,095 73,93967 2 _,334(b) _,112 _,091 _74,10909 3 ,335(c) ,112 ,081 74,51630 4 ,343(d) ,118 ,076 74,72229

(15)

TABLE 3 – ANOVA (e) - THREE COUNTRY SAMPLE – TCP

Model

Sum of

Squares df Mean Square F Sig.

1 Regression _56682,365 ₁ _56682,365 _10,368 _,002(a) Residual 481102,57 2 88 5467,075 Total 537784,93 8 89 2 Regression _59967,233 ₂ _29983,617 _5,459 _,006(b) Residual 477817,70 4 87 5492,158 Total 537784,93 8 89 3 Regression 60254,547 3 20084,849 3,617 ,016(c) Residual 477530,39 1 86 5552,679 Total 537784,93 8 89 4 Regression _63194,238 ₄ _15798,559 _2,830 _,030(d) Residual 474590,70 0 85 5583,420 Total 537784,93 8 89

a Predictors: (Constant), BoardComposition b Predictors: (Constant), BoardComposition, MF c Predictors: (Constant), BoardComposition, MF, DSD d Predictors: (Constant), BoardComposition, MF, DSD, EXP e Dependent Variable: TCP Ratio %

TABLE 4 – Coefficients (a) - THREE COUNTRY SAMPLE - TCP

Model

Unstandardized Coefficients

Standardized

Coefficients t Sig. Collinearity Statistics B

Std.

Error Beta Tolerance VIF B

Std. Error 1 (Constant) 199,996 31,903 6,269 ,000 BoardComposition _-270,471 _83,999 _-,325 _-3,220 _,002 _1,000 _1,000 2 (Constant) 216,190 38,221 5,656 ,000 BoardComposition -265,876 84,401 -,319 -3,150 ,002 ,995 1,005 MF -2,223 2,875 -,078 -,773 ,441 ,995 1,005 3 (Constant) 221,153 44,194 5,004 ,000 BoardComposition -266,192 84,876 -,320 -3,136 ,002 ,995 1,005 MF _-2,261 _2,895 _-,080 _-,781 _,437 _,992 _1,008 DSD -1,262 5,549 -,023 -,227 ,821 ,996 1,004 4 (Constant) 236,123 48,883 4,830 ,000 BoardComposition -266,411 85,111 -,320 -3,130 ,002 ,995 1,005 MF _-2,096 _2,912 _-,074 _-,720 _,474 _,986 _1,014 DSD -1,158 5,567 -,021 -,208 ,836 ,996 1,004 EXP _-11,571 _15,947 _-,074 _-,726 _,470 _,994 _1,007

(16)

TABLE 5 - Excluded Variables (e) - THREE COUNTRY SAMPLE - TCP

Model

Beta In t Sig.

Partial

Correlation Collinearity Statistics Tolerance VIF

Minimum

Tolerance Tolerance VIF

Minimum Tolerance Tolerance 1 NEDPay ,058(a) ,561 ,576 ,060 ,966 1,035 ,966 MF -,078(a) -,773 ,441 -,083 ,995 1,005 ,995 DSD _-,019(a) _-,184 _,854 _-,020 _1,000 _1,000 _1,000 EXP -,080(a) -,794 ,429 -,085 1,000 1,000 1,000 2 NEDPay _,067(b) _,648 _,519 _,070 _,955 _1,048 _,955 DSD -,023(b) -,227 ,821 -,025 ,996 1,004 ,992 EXP _-,075(b) _-,735 _,464 _-,079 _,994 _1,006 _,989 3 NEDPay ,065(c) ,607 ,545 ,066 ,900 1,111 ,900 EXP _-,074(c) _-,726 _,470 _-,078 _,994 _1,007 _,986 4 NEDPay ,079(d) ,722 ,472 ,079 ,880 1,136 ,880

a Predictors in the Model: (Constant), BoardComposition b Predictors in the Model: (Constant), BoardComposition, MF c Predictors in the Model: (Constant), BoardComposition, MF, DSD d Predictors in the Model: (Constant), BoardComposition, MF, DSD, EXP e Dependent Variable: TCP Ratio %

TABLE 6 - Collinearity Diagnostics (a) - THREE COUNTRY SAMPLE - TCP

Model Dimension

Eigenvalue

Condition

Index Variance Proportions

(Constant)

BoardComposit

ion MF DSD EXP (Constant)

BoardComposit ion 1 1 1,970 1,000 ,02 ,02 2 _,030 _8,062 _,98 _,98 2 1 2,894 1,000 ,00 ,01 ,01 2 ,079 6,038 ,02 ,25 ,81 3 ,027 10,432 ,97 ,74 ,18 3 1 _3,774 _1,000 _,00 _,00 _,01 _,01 2 ,129 5,400 ,00 ,02 ,24 ,68 3 _,074 _7,139 _,01 _,39 _,56 _,12 4 ,023 12,928 ,98 ,59 ,19 ,19 4 1 4,678 1,000 ,00 ,00 ,00 ,01 ,00 2 ,132 5,954 ,00 ,01 ,15 ,74 ,05 3 _,097 _6,934 _,00 _,02 _,31 _,01 _,73 4 ,072 8,034 ,01 ,49 ,39 ,09 ,07 5 _,020 _15,336 _,99 _,49 _,14 _,16 _,15

(17)

TABLE 7 - Variables Entered/Removed (b) - THREE COUNTRY SAMPLE – LTP Model Variables Entered Variables Removed Method 1 DSD . Stepwise (Criteria: Probability -of-F-to-enter <= ,050, Probability -of-F-to-remove >= ,100). 2 MF(a) . Enter 3 BoardComp osition(a) . Enter 4 _EXP(a) _{. Enter}

a All requested variables entered. b Dependent Variable: LTP Ratio %

TABLE 8 - Model Summary - THREE COUNTRY SAMPLE – LTP

Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,208(a) ,043 ,033 300,21902 2 _,243(b) _,059 _,037 _299,48081 3 ,246(c) ,060 ,028 300,97468 4 _,251(d) _,063 _,019 _302,36552 a Predictors: (Constant), DSD b Predictors: (Constant), DSD, MF

(18)

TABLE 9 ANOVA (e) - THREE COUNTRY SAMPLE – LTP

Model

Sum of

1 Regression 360037,91 2 1 360037,912 3,995 ,049(a) Residual 7931568,5 09 88 90131,460 Total 8291606,4 22 89 2 Regression 488684,82 1 2 244342,411 2,724 ,071(b) Residual 7802921,6 01 87 89688,754 Total 8291606,4 22 89 3 Regression 501231,16 0 3 167077,053 1,844 ,145(c) Residual 7790375,2 62 86 90585,759 Total 8291606,4 22 89 4 Regression 520489,29 4 4 130122,323 1,423 ,233(d) Residual 7771117,1 28 85 91424,907 Total 8291606,4 22 89 a Predictors: (Constant), DSD b Predictors: (Constant), DSD, MF

c Predictors: (Constant), DSD, MF, BoardComposition d Predictors: (Constant), DSD, MF, BoardComposition, EXP e Dependent Variable: LTP Ratio %

TABLE 10 Coefficients (a) - THREE COUNTRY SAMPLE – LTP

Model

Standardized

Coefficients t Sig. Collinearity Statistics B

Std.

Error Beta Tolerance VIF B

Std. Error 1 (Constant) _-50,512 _86,404 _-,585 _,560 DSD 44,605 22,318 ,208 1,999 ,049 1,000 1,000 2 (Constant) 66,891 130,531 ,512 ,610 DSD 43,061 22,300 ,201 1,931 ,057 ,997 1,003 MF -13,903 11,608 -,125 -1,198 ,234 ,997 1,003 3 (Constant) 111,943 178,503 ,627 ,532 DSD _42,924 _22,414 _,201 _1,915 _,059 _,996 _1,004 MF -13,601 11,694 -,122 -1,163 ,248 ,992 1,008 BoardComposition -127,583 342,818 -,039 -,372 ,711 ,995 1,005 4 (Constant) 73,628 197,807 ,372 ,711 DSD _42,657 _22,525 _,199 _1,894 _,062 _,996 _1,004 MF -14,021 11,784 -,126 -1,190 ,237 ,986 1,014 BoardComposition _-127,023 _344,404 _-,039 _-,369 _,713 _,995 _1,005 EXP 29,616 64,528 ,048 ,459 ,647 ,994 1,007

(19)

TABLE 11 - Excluded Variables (e) - THREE COUNTRY SAMPLE - LTP

Model

Beta In t Sig.

Partial

Minimum

Minimum Tolerance Tolerance 1 NEDPay ,029(a) ,271 ,787 ,029 ,945 1,059 ,945 MF -,125(a) -1,198 ,234 -,127 ,997 1,003 ,997 BoardComposition _-,047(a) _-,453 _,652 _-,049 _1,000 _1,000 _1,000 EXP ,039(a) ,368 ,714 ,039 1,000 1,000 1,000 2 NEDPay _,040(b) _,372 _,711 _,040 _,938 _1,066 _,938 BoardComposition -,039(b) -,372 ,711 -,040 ,995 1,005 ,992 EXP _,048(b) _,463 _,645 _,050 _,994 _1,007 _,991 3 NEDPay ,033(c) ,302 ,764 ,033 ,900 1,111 ,900 EXP _,048(c) _,459 _,647 _,050 _,994 _1,007 _,986 4 NEDPay ,026(d) ,235 ,815 ,026 ,880 1,136 ,880

a Predictors in the Model: (Constant), DSD b Predictors in the Model: (Constant), DSD, MF

c Predictors in the Model: (Constant), DSD, MF, BoardComposition d Predictors in the Model: (Constant), DSD, MF, BoardComposition, EXP e Dependent Variable: LTP Ratio %

TABLE 12 - Collinearity Diagnostics (a) - THREE COUNTRY SAMPLE - LTP

Model Dimension

Eigenvalue

Condition

(Constant) DSD MF

BoardComposit

ion EXP (Constant) DSD

1 1 1,931 1,000 ,03 ,03 2 _,069 _5,271 _,97 _,97 2 1 2,835 1,000 ,01 ,02 ,01 2 ,126 4,735 ,00 ,59 ,35 3 ,038 8,597 ,99 ,39 ,64 3 1 _3,774 _1,000 _,00 _,01 _,01 _,00 2 ,129 5,400 ,00 ,68 ,24 ,02 3 _,074 _7,139 _,01 _,12 _,56 _,39 4 ,023 12,928 ,98 ,19 ,19 ,59 4 1 4,678 1,000 ,00 ,01 ,00 ,00 ,00 2 ,132 5,954 ,00 ,74 ,15 ,01 ,05 3 _,097 _6,934 _,00 _,01 _,31 _,02 _,73 4 ,072 8,034 ,01 ,09 ,39 ,49 ,07 5 _,020 _15,336 _,99 _,16 _,14 _,49 _,15

a Dependent Variable: LTP Ratio %

TABLE 13 Variables Entered/Removed (b) – CEO TCP - BOARD CONTROL

Model Variables Entered Variables Removed Method 1 BC(a) . Enter

(20)

TABLE 14 Model Summary – CEO TCP – BOARD CONTROL Model R R Square Adjusted R Square Std. Error of the Estimate 1 _,268(a) _,072 _,066 _79,10385 a Predictors: (Constant), BC

TABLE 15 ANOVA (b) – CEO TCP – BOARD CONTROL

Model

Sum of

1 Regression 71675,996 1 71675,996 11,455 ,001(a) Residual 926098,11 2 148 6257,420 Total 997774,10 8 149 a Predictors: (Constant), BC b Dependent Variable: TCP Ratio %

TABLE 16 Coefficients (a) – CEO TCP- BOARD CONTROL

Model

Standardized

Coefficients t Sig.

B Std. Error Beta B Std. Error

1 (Constant) 148,178 15,632 9,479 ,000

BC _-95,623 _28,253 _-,268 _-3,384 _,001

a Dependent Variable: TCP Ratio %

TABLE 17 Variables Entered/Removed (b) – CEO LTP – BOARD CONTROL

Model Variables Entered Variables Removed Method 1 _BC(a) _{. Enter}

TABLE 18 Model Summary – CEO LTP – BOARD CONTROL

Model R R Square Adjusted R Square Std. Error of the Estimate 1 _,163(a) _,027 _,020 _252,48278 a Predictors: (Constant), BC

TABLE 19 ANOVA (b) – CEO LTP – BOARD CONTROL

Model

Sum of

(21)

TABLE 20 Coefficients (a) – CEO LTP – BOARD CONTROL Model Unstandardized Coefficients Standardized Coefficients t Sig.

1 (Constant) _191,465 _49,893 _3,837 _,000

BC -181,539 90,179 -,163 -2,013 ,046

(22)

APPENDIX 4 – OUTPUT HYPOTHESIS 2

TABLE 21 - Variables Entered/Removed (a) - THREE COUNTRY SAMPLE – TCP

Model Variables Entered Variables Removed Method 1 CompSize . Stepwise (Criteria: Probability -of-F-to-enter <= ,050, Probability -of-F-to-remove >= ,100). 2 CEOAge . Stepwise (Criteria: Probability -of-F-to-enter <= ,050, Probability -of-F-to-remove >= ,100). a Dependent Variable: TCP Ratio %

TABLE 22 - Model Summary - THREE COUNTRY SAMPLE – TCP

Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,453(a) ,205 ,199 73,04117 2 _,481(b) _,231 _,219 _72,11711

a Predictors: (Constant), CompSize

b Predictors: (Constant), CompSize, CEOAge

TABLE 23 – ANOVA (c) - THREE COUNTRY SAMPLE – TCP

Model

Sum of

1 Regression 174721,55 1 1 174721,551 32,750 ,000(a) Residual 677546,64 7 127 5335,013 Total 852268,19 8 128 2 Regression 196957,56 5 2 98478,782 18,935 ,000(b) Residual 655310,63 3 126 5200,878 Total 852268,19 8 128

a Predictors: (Constant), CompSize

(23)

TABLE 24 – Coefficients (a) - THREE COUNTRY SAMPLE – TCP

Model

Standardized

Coefficients t Sig. Collinearity Statistics

B Std. Error Beta Tolerance VIF B Std. Error

1 (Constant) _80,989 _7,404 _10,939 _,000

CompSize 9,02E-010 ,000 ,453 5,723 ,000 1,000 1,000

2 (Constant) -34,144 56,159 -,608 ,544

CompSize 8,81E-010 ,000 ,442 5,653 ,000 ,996 1,004

CEOAge 2,072 1,002 ,162 2,068 ,041 ,996 1,004

TABLE 25 - Excluded Variables (c) - THREE COUNTRY SAMPLE - TCP

Model

Beta In t Sig.

Partial

Minimum

Minimum Tolerance Tolerance 1 BS ,014(a) ,179 ,858 ,016 ,981 1,020 ,981 CEOTenure _,130(a) _1,646 _,102 _,145 _,989 _1,011 _,989 CEOAge ,162(a) 2,068 ,041 ,181 ,996 1,004 ,996 2 BS _,027(b) _,346 _,730 _,031 _,975 _1,026 _,975 CEOTenure ,088(b) 1,059 ,292 ,094 ,891 1,122 ,891

a Predictors in the Model: (Constant), CompSize

b Predictors in the Model: (Constant), CompSize, CEOAge c Dependent Variable: TCP Ratio %

TABLE 26 Collinearity Diagnostics (a) - THREE COUNTRY SAMPLE - TCP

Model Dimension

Eigenvalue

Condition

Index Variance Proportions (Constant) CompSize CEOAge (Constant) CompSize

1 1 _1,495 _1,000 _,25 _,25

2 ,505 1,722 ,75 ,75

2 1 2,358 1,000 ,00 ,07 ,00

2 ,636 1,925 ,00 ,93 ,00

3 _,006 _19,184 _1,00 _,00 _1,00

TABLE 27 - Variables Entered/Removed (b) - THREE COUNTRY SAMPLE - LTP

Model Variables Entered Variables Removed Method 1 _CompSize, CEOAge, BS, CEOTenure (a) . Enter

TABLE 28 - Model Summary - THREE COUNTRY SAMPLE - LTP

Model R R Square Adjusted R Square Std. Error of the Estimate 1 _,136(a) _,019 _-,013 _257,48609

(24)

TABLE 29 – ANOVA (b) - THREE COUNTRY SAMPLE – LTP

Model

Sum of

1 Regression 155724,88 9 4 38931,222 ,587 ,672(a) Residual 8221086,5 13 124 66299,085 Total 8376811,4 02 128

a Predictors: (Constant), CEOAge, CompSize, BS, CEOTenure b Dependent Variable: LTP Ratio %

TABLE 30 – Coefficients (a) - THREE COUNTRY SAMPLE – LTP

Model

Standardized

1 (Constant) _200,571 _218,917 _,916 _,361

BS 56,339 53,282 ,096 1,057 ,292 ,951 1,052

CompSize _-1,86E-010 _,000 _-,030 _-,327 _,744 _,956 _1,046

CEOTenure -,266 3,089 -,008 -,086 ,932 ,870 1,150

CEOAge _-2,963 _3,772 _-,074 _-,786 _,434 _,896 _1,116

TABLE 31 - Collinearity Diagnostics (a) - THREE COUNTRY SAMPLE - LTP

Model Dimension

Eigenvalue

Condition

(Constant) BS CompSize CEOTenure CEOAge (Constant) BS

1 1 3,782 1,000 ,00 ,01 ,02 ,02 ,00

2 _,752 _2,242 _,00 _,00 _,82 _,07 _,00

3 ,396 3,091 ,00 ,05 ,09 ,72 ,00

4 _,065 _7,633 _,03 _,90 _,07 _,15 _,04

5 ,006 25,691 ,97 ,05 ,00 ,05 ,96

TABLE 32 - Variables Entered/Removed (a) NETHERLANDS – TCP

(25)

TABLE 33 - Model Summary NETHERLANDS – TCP Model R R Square Adjusted R Square Std. Error of the Estimate 1 _,601(a) _,361 _,344 _1367005,171

a Predictors: (Constant), CompanySize

TABLE 34 – ANOVA (b) NETHERLANDS – TCP

Model

Sum of

1 Regression 401028244 84689,390 1 40102824484 689,390 21,460 ,000(a) Residual 710107192 06042,500 38 18687031370 01,120 Total 111113543 690731,90 0 39

a Predictors: (Constant), CompanySize b Dependent Variable: TCP

TABLE 35 – Coefficients (a) NETHERLANDS – TCP

Model

Standardized

1 (Constant) 1801083,8 13 236984,12 9 7,600 ,000 CompanySize _1,75E-005 _,000 _,601 _4,633 _,000 _1,000 _1,000 a Dependent Variable: TCP

TABLE 36 - Excluded Variables (b) NETHERLANDS - TCP

Model

Beta In t Sig.

Partial

Minimum

Tolerance Tolerance

1 BS _-,240(a) _-1,683 _,101 _-,267 _,788 _1,269 _,788

CEOTenure -,040(a) -,304 ,763 -,050 ,990 1,010 ,990

CEOAge _,229(a) _1,771 _,085 _,280 _,951 _1,051 _,951

a Predictors in the Model: (Constant), CompanySize b Dependent Variable: TCP

TABLE 37 Collinearity Diagnostics (a) NETHERLANDS - TCP

Model Dimension

Eigenvalue

Condition

Index Variance Proportions (Constant) CompanySize (Constant) CompanySize

1 1 _1,410 _1,000 _,29 _,29

2 ,590 1,546 ,71 ,71

(26)

TABLE 38 - Variables Entered/Removed (b) NETHERLANDS - LTP Model Variables Entered Variables Removed Method 1 CompanySi ze, CEOTenure , CEOAge, BS(a) . Enter

a All requested variables entered. b Dependent Variable: LTP

TABLE 39 - Model Summary NETHERLANDS - LTP

Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,224(a) ,050 -,058 927288,666

a Predictors: (Constant), CompanySize, CEOTenure, CEOAge, BS

TABLE 40 – ANOVA (b) NETHERLANDS - LTP

Model

Sum of

1 Regression 159661023 7138,844 4 39915255928 4,711 ,464 ,761(a) Residual 300952494 45984,650 35 85986426988 5,276 Total 316918596 83123,490 39

a Predictors: (Constant), CompanySize, CEOTenure, CEOAge, BS b Dependent Variable: LTP

TABLE 41 – Coefficients (a) NETHERLANDS – LTP

Model

Standardized

1 (Constant) 1685404,1 11 1983461,3 69 ,850 ,401 BS 167236,47 9 454756,08 1 ,071 ,368 ,715 ,720 1,389 CompanySize _1,98E-007 _,000 _,013 _,066 _,948 _,726 _1,378 CEOTenure -15647,349 26805,378 -,101 -,584 ,563 ,900 1,112 CEOAge -29192,166 31074,993 -,160 -,939 ,354 ,931 1,074 a Dependent Variable: LTP

TABLE 42 - Collinearity Diagnostics (a) NETHERLANDS - LTP

Model Dimension

Eigenvalue

Condition

(Constant) BS CompanySize CEOTenure CEOAge (Constant) BS

(27)

APPENDIX 5 – OUTPUT HYPOTHESIS 3

TABLE 43 Variables Entered/Removed (b) – BS/BC - THREE COUNTRY SAMPLE

Model Variables Entered Variables Removed Method 1 _BS(a) _{. Enter}

a All requested variables entered. b Dependent Variable: BC

TABLE 44 Model Summary – BS/BC - THREE COUNTRY SAMPLE

Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,075(a) ,006 -,001 ,229373 a Predictors: (Constant), BS

TABLE 45 ANOVA (b) – BS/BC - THREE COUNTRY SAMPLE

Model

Sum of

1 Regression ,044 1 ,044 ,833 ,363(a)

Residual _7,734 ₁₄₇ _,053

Total 7,778 148

a Predictors: (Constant), BS b Dependent Variable: BC

TABLE 46 Coefficients (a) – BS/BC - THREE COUNTRY SAMPLE

Model

Standardized

Coefficients t Sig.

1 (Constant) _,453 _,057 _7,989 _,000

BS ,038 ,042 ,075 ,913 ,363

a Dependent Variable: BC

TABLE 47 Variables Entered/Removed (b) – BS/BC NETHERLANDS

Model Variables Entered Variables Removed Method 1 BS(a) . Enter

a All requested variables entered. b Dependent Variable: BoardControl

TABLE 48 Model Summary – BS/BC NETHERLANDS

(28)

TABLE 49 ANOVA (b) – BS/BC NETHERLANDS

Model

Sum of

1 Regression _,130 ₁ _,130 _2,982 _,091(a)

Residual 2,055 47 ,044

Total _2,185 ₄₈

a Predictors: (Constant), BS b Dependent Variable: BoardControl

TABLE 50 Coefficients (a) – BS/BC NETHERLANDS

Model

Standardized

Coefficients t Sig.

1 (Constant) ,235 ,161 1,455 ,152

BS _,147 _,085 _,244 _1,727 _,091

a Dependent Variable: BoardControl

MANOVA

TABLE 51 Between-Subjects Factors – - THREE COUNTRY SAMPLE

Value Label N

BS 1 one-tier 52

2 _two-tier ₃₈

TABLE 52 Multivariate Tests (b) – - THREE COUNTRY SAMPLE

Effect Value F Hypothesis df Error df Sig.

Intercept Pillai's Trace ,976 684,316(a) 5,000 84,000 ,000

Wilks' Lambda _,024 _684,316(a) _5,000 _84,000 _,000

Hotelling's Trace 40,733 684,316(a) 5,000 84,000 ,000

Roy's Largest Root 40,733 684,316(a) 5,000 84,000 ,000

BS Pillai's Trace _,496 _16,554(a) _5,000 _84,000 _,000

Wilks' Lambda ,504 16,554(a) 5,000 84,000 ,000

Hotelling's Trace _,985 _16,554(a) _5,000 _84,000 _,000

Roy's Largest Root ,985 16,554(a) 5,000 84,000 ,000

(29)

TABLE 53 Tests of Between-Subjects Effects – - THREE COUNTRY SAMPLE

Source Dependent Variable

Type III Sum

of Squares df Mean Square F Sig.

Corrected Model NEDPay 47668570589

1,074(a) 1 47668570589 1,074 38,459 ,000 MF 37,487(b) 1 37,487 5,234 ,025 BoardComposition ,022(c) 1 ,022 2,599 ,111 DSD _46,462(d) ₁ _46,462 _30,400 _,000 EXP ,098(e) 1 ,098 ,392 ,533 Intercept NEDPay 12917596169 45,172 1 12917596169 45,172 104,220 ,000 MF _5540,554 ₁ _5540,554 _773,507 _,000 BoardComposition 12,073 1 12,073 1411,601 ,000 DSD _1212,492 ₁ _1212,492 _793,321 _,000 EXP 179,120 1 179,120 716,415 ,000 BS NEDPay 47668570589 1,073 1 47668570589 1,073 38,459 ,000 MF _37,487 ₁ _37,487 _5,234 _,025 BoardComposition ,022 1 ,022 2,599 ,111 DSD _46,462 ₁ _46,462 _30,400 _,000 EXP ,098 1 ,098 ,392 ,533 Error NEDPay 10907156503 82,391 88 12394496027, 073 MF _630,335 ₈₈ _7,163 BoardComposition ,753 88 ,009 DSD _134,497 ₈₈ _1,528 EXP 22,002 88 ,250 Total NEDPay 31531986938 42,357 90 MF _6492,000 ₉₀ BoardComposition 12,982 90 DSD _1348,997 ₉₀ EXP 207,000 90

Corrected Total NEDPay 15674013562

73,465 89

MF _667,822 ₈₉

BoardComposition ,775 89

DSD _180,959 ₈₉

EXP 22,100 89

a R Squared = ,304 (Adjusted R Squared = ,296) b R Squared = ,056 (Adjusted R Squared = ,045) c R Squared = ,029 (Adjusted R Squared = ,018) d R Squared = ,257 (Adjusted R Squared = ,248) e R Squared = ,004 (Adjusted R Squared = -,007)

TABLE 54 Between-Subjects Factors - NETHERLANDS

Value Label N

BS 1 one-tier 5

(30)

TABLE 55 Multivariate Tests (b) – NETHERLANDS

Effect Value F Hypothesis df Error df Sig.

Intercept Pillai's Trace ,965 207,092(a) 5,000 37,000 ,000

Wilks' Lambda _,035 _207,092(a) _5,000 _37,000 _,000

Roy's Largest Root _27,985 _207,092(a) _5,000 _37,000 _,000

BS Pillai's Trace ,839 38,533(a) 5,000 37,000 ,000

Wilks' Lambda _,161 _38,533(a) _5,000 _37,000 _,000

Roy's Largest Root _5,207 _38,533(a) _5,000 _37,000 _,000

(31)

TABLE 56 Tests of Between-Subjects Effects – NETHERLANDS

Source Dependent Variable

Type III Sum

of Squares df Mean Square F Sig.

Corrected Model DirectorsPay 64712484707

,513(a) 1 64712484707, 513 147,569 ,000 MeetingFrequency ,035(b) 1 ,035 ,004 ,949 BoardComposition ,025(c) 1 ,025 3,537 ,067 DSD _2,504(d) ₁ _2,504 _1,291 _,262 EXP ,000(b) 1 ,000 ,000 ,982 Intercept DirectorsPay 20659415269 9,475 1 20659415269 9,475 471,114 ,000 MeetingFrequency _927,663 ₁ _927,663 _110,367 _,000 BoardComposition 2,150 1 2,150 299,384 ,000 DSD _292,288 ₁ _292,288 _150,709 _,000 EXP 34,512 1 34,512 137,658 ,000 BS DirectorsPay 64712484707 ,513 1 64712484707, 513 147,569 ,000 MeetingFrequency _,035 ₁ _,035 _,004 _,949 BoardComposition ,025 1 ,025 3,537 ,067 DSD _2,504 ₁ _2,504 _1,291 _,262 EXP ,000 1 ,000 ,000 ,982 Error DirectorsPay 17979413021 ,075 41 438522268,80 7 MeetingFrequency _344,616 ₄₁ _8,405 BoardComposition ,294 41 ,007 DSD _79,516 ₄₁ _1,939 EXP 10,279 41 ,251 Total DirectorsPay 24627051409 7,266 43 MeetingFrequency _2623,000 ₄₃ BoardComposition 6,459 43 DSD _897,742 ₄₃ EXP 94,000 43

Corrected Total DirectorsPay 82691897728

,587 42

MeetingFrequency _344,651 ₄₂

BoardComposition ,320 42

DSD _82,020 ₄₂

EXP 10,279 42

(32)

APPENDIX 6 – DESCRIPTIVE STATISTICS

TABLE 57 Descriptives – - THREE COUNTRY SAMPLE / TCP

BS Statistic Std. Error TCP one-tier Mean 5133805,3 3 475970,59 6 95% Confidence

Interval for Mean

Lower Bound 4190147,3 2 Upper Bound _6077463,3 3 5% Trimmed Mean 4432211,1 0 Median 3627738,1 0 Variance 24240636 913857,85 0 Std. Deviation 4923478,1 32 Minimum 0 Maximum _32210000 Range 32210000 Interquartile Range _3618517 Skewness 2,913 ,234 Kurtosis _10,601 _,463 two-tier Mean 1693922,9 3 229567,64 6 95% Confidence

Interval for Mean

(33)

TABLE 58 Descriptives – - THREE COUNTRY SAMPLE / LTP BS Statistic Std. Error LTP one-tier Mean 32029191, 33 7656548,7 23 95% Confidence

Interval for Mean

Lower Bound 16849338, 80 Upper Bound _47209043, 86 5% Trimmed Mean 18567071, 36 Median 6609604,1 8 Variance 62726330 02394580, 000 Std. Deviation 79199955, 823 Minimum 0 Maximum 64660000 0 Range 64660000 0 Interquartile Range _19219976 Skewness 5,407 ,234 Kurtosis _36,202 _,463 two-tier Mean 255490,96 136097,17 0 95% Confidence

Interval for Mean

(34)

TABLE 59 Descriptives – NETHERLANDS / TCP BS Statistic Std. Error TCP one-tier Mean 3937693,1 7 297432,97 5 95% Confidence

Interval for Mean

Lower Bound 3209900,9 0 Upper Bound _4665485,4 4 5% Trimmed Mean 3928570,6 8 Median 3848350,0 3 Variance 61926462 2705,225 Std. Deviation 786933,68 4 Minimum _2987845 Maximum 5051746 Range _2063901 Interquartile Range 1597610 Skewness _,261 _,794 Kurtosis -1,487 1,587 two-tier Mean 1693922,9 3 229567,64 6 95% Confidence

Interval for Mean

(35)

TABLE 60 Descriptives – NETHERLANDS / LTP

BS Statistic Std. Error

LTP one-tier Mean _51504,71 _51504,710

95% Confidence Interval for Mean

Lower Bound -74522,77 Upper Bound 177532,19 5% Trimmed Mean 37197,85 Median _,00 Variance 18569145 725,358 Std. Deviation 136268,65 3 Minimum 0 Maximum ₃₆₀₅₃₃ Range 360533 Interquartile Range ₀ Skewness 2,646 ,794 Kurtosis _7,000 _1,587 two-tier Mean 255490,96 136097,17 0 95% Confidence

Interval for Mean

(36)

TABLE 61 Descriptive Statistics – - THREE COUNTRY SAMPLE BS Mean Std. Deviation N NEDPay one-tier 194953,78 145332,301 52 two-tier _47605,91 _19115,779 ₃₈ Total 132740,24 132707,389 90 MF one-tier _8,60 _2,378 ₅₂ two-tier 7,29 3,039 38 Total _8,04 _2,739 ₉₀ BoardComposition one-tier ,3549 ,09792 52 two-tier ,3867 ,08441 38 Total _,3683 _,09331 ₉₀ DSD one-tier 2,9883 1,09064 52 two-tier _4,4430 _1,41261 ₃₈ Total 3,6025 1,42592 90 EXP one-tier _1,46 _,503 ₅₂ two-tier 1,39 ,495 38 Total _1,43 _,498 ₉₀

TABLE 62 Descriptive Statistics – NETHERLANDS

(37)

APPENDIX 7 – FIGURES INTERACTION EFFECT

Figure 1: Interaction effect between board control and TCP ratio and LTP ratio with board structure as

moderator for the three-country sample.

BC 1,000 0,800 0,600 0,400 0,200 0,000 TCP R a tio % 500,00 400,00 300,00 200,00 100,00 0,00 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,049 R Sq Linear = 0,139 BC 1,000 0,800 0,600 0,400 0,200 0,000 LTP R a tio % 2500,00 2000,00 1500,00 1000,00 500,00 0,00 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,037 R Sq Linear = 0,027

Figure 2: Interaction effect between NED pay and TCP ratio and LTP ratio with board structure as moderator

for the three country sample.

(38)

Figure 3: Interaction effect between meeting frequency and TCP ratio and LTP ratio with board structure as

moderator for the three country sample.

MF 25 20 15 10 5 0 TCP R a tio % 500,00 400,00 300,00 200,00 100,00 0,00 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,008 R Sq Linear = 0,004 MF 25 20 15 10 5 0 LTP R a tio % 2500,00 2000,00 1500,00 1000,00 500,00 0,00 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,003 R Sq Linear = 0,02

Figure 4: Interaction effect between board composition and TCP ratio and LTP ratio with board structure as

moderator for the three country sample.

(39)

Figure 5: Interaction effect between non-executive directors side duties and TCP ratio and LTP ratio with

board structure as moderator for the three country sample.

DSD 8,00 6,00 4,00 2,00 0,00 TCP R a tio % 500,00 400,00 300,00 200,00 100,00 0,00 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,001 R Sq Linear = 0,006 DSD 8,00 6,00 4,00 2,00 0,00 LTP R a tio % 2500,00 2000,00 1500,00 1000,00 500,00 0,00 two-tier one-tier two-tier one-tier BS R Sq Linear = 2,62E-4 R Sq Linear = 0,086

Figure 6: Interaction effect between experience by tenure and TCP ratio and LTP ratio with board structure as

moderator for the three country sample.

(40)

Figure 7: Interaction effect between board control and TCP ratio and LTP ratio with board structure as

moderator for the Netherlands

BoardControl 1,000 0,800 0,600 0,400 0,200 0,000 TCP 8000000 6000000 4000000 2000000 0 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,143 R Sq Linear = 0,139 BoardControl 1,000 0,800 0,600 0,400 0,200 0,000 LTP 5000000 4000000 3000000 2000000 1000000 0 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,089 R Sq Linear = 0,027

Figure 8: Interaction effect between NED pay and TCP ratio and LTP ratio with board structure as moderator

for the Netherlands.

(41)

Figure 9: Interaction effect between meeting frequency and TCP ratio and LTP ratio with board structure as

moderator for the Netherlands.

MeetingFrequency 25 20 15 10 5 0 TCP 8000000 6000000 4000000 2000000 0 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,556 R Sq Linear = 0,004 MeetingFrequency 25 20 15 10 5 0 LTP 5000000 4000000 3000000 2000000 1000000 0 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,286 R Sq Linear = 0,02

Figure 10: Interaction effect between board composition and TCP ratio and LTP ratio with board structure as

moderator for the Netherlands.

(42)

Figure 11: Interaction effect between non-executive directors side duties and TCP ratio and LTP ratio with

board structure as moderator for the Netherlands.

DSD 8,00 6,00 4,00 2,00 TCP 8000000 6000000 4000000 2000000 0 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,007 R Sq Linear = 0,006 DSD 8,00 6,00 4,00 2,00 LTP 5000000 4000000 3000000 2000000 1000000 0 two-tier one-tier two-tier one-tier BS R Sq Linear = 0,001 R Sq Linear = 0,086

Figure 12: Interaction effect between experience by tenure and TCP ratio and LTP ratio with board structure

as moderator for the Netherlands.

(43)

APPENDIX 8 – MODERATOR EFFECT

TABLE 63 - variables Entered/Removed(b) - Moderator Effect Overall Board Control / TCP ratio three country sample Model Variables Entered Variables Removed Method 1 central_over

allBC, BS(a) . Enter 2 moderator_

overallBC(a )

. Enter a All requested variables entered.

b Dependent Variable: TCP Ratio %

TABLE 64 - Model Summary - Moderator Effect Overall Board Control / TCP ratio three country sample

R R Square Adjusted R Square Std. Error of the

Estimate Change Statistics

R Square Change F Change df1 df2 Sig. F Change R Square Change F Change df1 df2 ,281(a) ,079 ,067 79,16864 ,079 6,279 2 146 ,002 ,287(b) ,083 ,064 79,29746 ,003 ,526 1 145 ,469

a Predictors: (Constant), central_overallBC, BS

b Predictors: (Constant), central_overallBC, BS, moderator_overallBC

TABLE 65 - ANOVA(c) - Moderator Effect Overall Board Control / TCP ratio three country sample

Model

Sum of

1 Regression 78704,896 2 39352,448 6,279 ,002(a) Residual 915080,36 9 146 6267,674 Total 993785,26 5 148 2 Regression 82012,628 3 27337,543 4,348 ,006(b) Residual 911772,63 7 145 6288,087 Total 993785,26 5 148

a Predictors: (Constant), central_overallBC, BS

b Predictors: (Constant), central_overallBC, BS, moderator_overallBC c Dependent Variable: TCP Ratio %

TABLE 66 - Coefficients(a) - Moderator Effect Overall Board Control / TCP ratio three country sample

Model

Standardized

Coefficients t Sig.

1 (Constant) 123,016 19,637 6,265 ,000 BS _-17,743 _14,456 _-,098 _-1,227 _,222 central_overallBC -91,743 28,468 -,257 -3,223 ,002 2 (Constant) 122,404 19,687 6,218 ,000 BS -16,982 14,518 -,094 -1,170 ,244 central_overallBC _-32,176 _86,940 _-,090 _-,370 _,712 moderator_overallBC -47,491 65,480 -,177 -,725 ,469