This paper explores the relationship between board director compensation and bank performance for the period 1999–2021, considering the US banking system. The literature in this area with reference to financial companies and banks is poorly developed and leads to mixed results. Furthermore,...

We consider a model of executive compensation in which CEOs have power to influence their compensation and test its implications using CEO compensation data from Execucomp. In the proposed model, CEOs endogenously determine their equity and salary compensation by maximizing the expected utility...

Research Questions/Issues: Executive remuneration as a tool of resolving agency problems or as a sign of them has been discussed in the literature for decades. The discussion, however, has been focused on non-financial firms. Bankers’ remuneration has been overlooked until recently. Due to...

This study investigates the impact of board incentives as proxied by directors` remuneration on the financial performance of listed textile companies in Bangladesh. Using the Generalized Method of Moments (GMM) and data pertaining to listed textile companies of the Dhaka Stock Exchange (DSE)...

AbstractDivergent views exist about the impact of equity-based compensation on monitoring by Non-Executive Directors (NEDs) Prior studies report conflicting results mainly because of the endogeneity problem, which were not addressed or addressed using ineffective techniques. This study attempts...

We develop a model in which firms in financial distress design executive compensation contracts, hire and fire executives, and accept or reject government bailout funds that (if accepted) constrain the design of future compensation contracts. Using data from COMPUSTAT and ExecuComp (1992-2007)...

Unequal pay has become a global threat to meeting the United Nations’ sustainability goals. Taiwan has been making efforts to eliminate the pay disparity between executives and employees by requiring Taiwan-listed firms to disclose the prior year’s average non-executive employee...

This study documents that firms with active corporate owners compensate their employees less than their peers. We analyze over 20 million employee records from 897 US firms and calculate pay differentials for employees in comparable positions across firms. The analysis yields three main...

In this paper, I use a unique law that sets a binding upper limit on financial firms' executive compensation in Israel and study its spillover effects on executive compensation in the non-restricted firms. The results indicate that the legislation created an anchoring effect at the threshold...