CEO international experience and its effects on total compensation.

A considerable amount of research has been produced about the value of overseas assignments. This study offers a novel perspective by bridging human capital theory and social network theory to study the relationship between CEO international experience and compensation. Focusing on a panel dataset of Dutch and Swiss international companies over the five-year period from 2008-2012, with a total of 145 firm-year combinations, we found that total compensation effects of CEO international experience follow an inverted U-shaped relationship. Firm internationalization affects the main relationship by flattening the curve. These findings allow for a better understanding of the compensation effects of international experience. Managerial implications are discussed, together with opportunities for future research.