Is Corporate Governance Different for Bank Holding Companies?

[...]We discuss the potential benefits and costs associated withsome of the corporate governance variables for an average firm.However, we stress that all of these variables are ultimately partof a simultaneous system that determines the corporation’svalue and the allocation of such value among claimants. Also,different governance mechanisms may be substitutes for oneanother. For example, certain executive pay packages can varyacross firms, even in the same business environment, for goodreason. Firms with more effective boards may have more equity-based CEO compensation in their structure, whilefirms with greater CEO ownership may have more cashcompensation (Mehran 1995). Thus, the quality ofgovernance of any organization must be evaluated along anumber of dimensions.[...]