CEO Compensation and Performance of Commercial Banks

1997 ◽  
Vol 23 (11) ◽  
pp. 40-55 ◽  
Author(s):  
Aigbe Akhigbe ◽  
Jeff Madura ◽  
Huldah Ryan
2015 ◽  
Vol 54 (S1) ◽  
pp. s45-s62 ◽  
Author(s):  
Mohammad Faisal Ahammad ◽  
Sang Mook Lee ◽  
Miki Malul ◽  
Amir Shoham

2012 ◽  
Vol 10 (1) ◽  
pp. 97-109 ◽  
Author(s):  
Sam Ngwenya ◽  
Mahlomolo Khumalo

The study investigates the relationship between CEO compensation and performance of State Owned Enterprises (SOEs) in South Africa, using data for the period 2009 to 2011. The results indicated that there exist no positive relationship between CEO compensation and SOEs performance as measured by return on assets. The results also indicated a positive relationship between CEO compensation (base salary) and the size of SOEs as measured by total revenue and number of employees. The results suggest that board members of SOEs in South Africa should hold CEOs accountable for the performance of SOEs, and should not pay huge salaries and bonuses to non performing CEOs.


2014 ◽  
Vol 11 (2) ◽  
pp. 677-687
Author(s):  
Sam Ngwenya

The global financial crisis of 2008 that resulted in the collapse of many financial institutions in the United States (US) and Europe have resulted in debates over the failures of corporate governance structures to properly protect investors. The main objective of the study was to determine the relationship between corporate governance and performance of listed commercial banks in South Africa. The results of the study indicated a statistically positive significant relationship between board size, proportion of non-independent and non-executive directors and bank performance. The results of the rest of the corporate governance indicators are mixed when using different performance measurement variables.


2012 ◽  
Vol 13 (5) ◽  
pp. 931-950 ◽  
Author(s):  
Carlos González-Pedraz ◽  
Sergio Mayordomo

This empirical paper analyzes the effect of trademark activity on the market value and performance of US commercial banks from two perspectives. First, a longterm perspective considers the effect of such activity on banks’ Tobin's q. Second, with a short-term perspective, the authors analyze the effect of trademark activity on banks’ abnormal returns. An older portfolio of trademarks diminishes the ratio of market value to firm assets, but this ratio can be improved in the long term by abandoning old trade-marks. Portfolios of trademarks with wide diversification do not help increase Tobin's q. Furthermore, according to an event study, the creation of a trademark has a positive effect on cumulative abnormal returns compared with no event, whereas a cancellation event has a negative impact.


Accounting ◽  
2020 ◽  
pp. 161-168 ◽  
Author(s):  
Hung Cuong Le ◽  
Tien Loc Vo

Author(s):  
Waqas Tariq ◽  
Muhammad Usman ◽  
Haseeb Zahid Mir ◽  
Inam Aman ◽  
Imran Ali

As profitability is a comparative measure that describes the associations of total amount of profit with different factors. Thisstudy examines the influence of commercial banks determinants on the performance of commercial banks in Pakistan over the time period from 2004-2010. Consistency in performance is the basic reason for smooth running and presence of every financial institution.Profitability is the most significant and consistent indicator as it contributes huge amount of profitthat ultimately impacts its performance positively. The commercial bank’s profitability is found out by the return on equity (ROE) and net-interest margin(NIM). Result indicates that the capital strength of a bank is utmost significance in affecting its performance, as a well-capitalized bank is observed to be less risky and such edge lead to high profitability. The assets quality, measured by the loans loss provisions, affects the performance of the banks positively and bank size as deposit indicates direct association with profitability as large banks earn more profit instead of small banks. Inflation and NIGI affects the bank’s profitability inversely as increase inflation affects banks cost that increased and its earning main source is its fee that it charge on its services but free services without any charges decrease in gross income that lead a reduction in profit. This study is important and worthwhile for all commercial banks mangers regarding performance decisions of banks. As the development of the banking sector depends profoundly on strong decision making that leads to the efficiency and performance


2000 ◽  
Vol 13 (4) ◽  
pp. 293-311 ◽  
Author(s):  
Rajaram Veliyath ◽  
Kannan Ramaswamy

The literature on CEO compensation reflects two common biases: (a) the dominant use of the agency theory perspective and (b) the almost exclusive use of U.S. and U.K samples. Agency theory views compensation as a consequence of the incentive contracts and the processes of corporate governance. However, little is known about the determinants of CEO compensation in developing countries. Considering that foreign direct investment of U.S. multinational enterprises increased 10-fold over the past decade, mostly in developing economies, there is a great need to understand the dynamics of pay setting in these foreign contexts. Overall, there is an imperative need to explore alternative theoretical perspectives as well as investigate nontraditional contexts to broaden existing theoretical premises. In an attempt to address this need, this study investigates the CEO's social embeddedness and overt and covert power as determinants of CEO pay in a sample of Indian family-controlled firms. Using a time-series, cross-sectional regression analysis, we find family shareholding and the percentage of inside directors on the board (identified as bases of overt power for the CEO) to be the predominant influences on CEO pay. By contrast, some of the identified bases of covert power, such as the CEO's tenure, age, education, and firm diversification, are not significant. Surprisingly, controls for firm size and performance also exhibit no influence on CEO pay. These findings offer a useful point of reference against which results from western studies can be compared to formulate more holistic theories of CEO pay.


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