scholarly journals Regulation, Subordinated Debt, and Incentive Features of CEO Compensation in the Banking Industry

Author(s):  
Kose John ◽  
Yiming Qian ◽  
Hamid Mehran

2009 ◽  
Vol 36 (3) ◽  
pp. 286-307 ◽  
Author(s):  
Helder Ferreira de Mendonça ◽  
Renato Falci Villela Loures




2020 ◽  
Author(s):  
Shaker Ahmed ◽  
Mikko Ranta ◽  
Sami Vähämaa




Author(s):  
Ehijiele Ekienabor ◽  
Damian Mbaegbu ◽  
Sunday Aguwamba

This is a quantitative research based on secondary sources of data. The study examines the influence of Chief Executive Officer’s (CEO) compensation on a firm's performance. The objectives of the study were to determine if CEO compensation and firm size do significantly influence a firm’s performance. In other to elicit information to examine the relationship between the variables, the convenience sampling technique, with the combination of both the cross-sectional and time-series data (panel data) were used since they provide greater precision and guard against having an illusory sample. 10 banks quoted on the Nigerian Stock Exchange were sampled for easy accessibility of data. The least square regression technique was used to test the hypotheses of the study. Two hypotheses were tested using panel least square (EViews 8) and from the research work, we summarize the following results; there is a significant relationship between CEO compensation and firm performance in the Nigerian banking industry. In addition, firm size does significantly influence firm performance in the Nigerian banking industry. The study recommends that there should be proper compensation review as this will increase the productivity of the executives. Since increased pay is necessary for the efficiency of the workers, it is advised to ensure a considerable pay as this will ensure for efficiency in the organization. In addition, since the core goal of setting up any business is to make a profit, business organisations should sort out ways at maximising profit and this could include cutting down expenses such as cutting down excessive employees’ pay (CEOs pay especially) and setting apposite pay package for employees. Therefore, policymakers (board of directors) should make an effort to align CEO’s paywith the firm’s capability to pay.



Author(s):  
Anwar Azazi

Objective – The objective of this study was to investigate empirically the relationship between the compensation of chief executive officers (CEO) and a firm’s performance in the banking industry and to examine if CEO compensation affects bank performance differently between banks with and without prospect. Methodology/Technique – The author uses two measures of performance, total return on assets and Tobin, s Q, and concentrate on total CEO compensation. All data are collected from annual reports of banks listed in Indonesia Stock Exchange for a sample of 23 commercial banks or 167 firm-year observation over the 2009-2018 period utilizing the purposive random sampling technique. CEO compensation and bank performance are then analysed employing pooled regression method. Findings – This study finds supporting evidence for the agency-related problem in the banking industry in Indonesia. It then proves that high CEO compensation does have an inverse effect on bank performance, mainly on firm value. It also provides evidence that the pay-performance also demonstrates different patterns in firms with and without prospect. Novelty – This study uses novel and hand-collected data on CEO compensation in the banking industry and developing econometric evidence regarding CEO pay-performance relating to banks with and without prospect. Type of Paper: Empirical. JEL Classification: G21, G32, M12. Keywords: CEO compensation; Financial performance; Banking industry. Reference to this paper should be made as follows: Azazi, A. 2020. CEO Compensation and Firm Performance in Emerging Market: Evidence from Indonesia Selected Listed Banks, Acc. Fin. Review, 5 (3): 95 – 109. https://doi.org/10.35609/afr.2020.5.3(2)



2010 ◽  
Vol 16 (4) ◽  
pp. 383-399 ◽  
Author(s):  
Kose John ◽  
Hamid Mehran ◽  
Yiming Qian


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