This paper empirically addresses the questions of whether and, if yes, how U.S. bankers are compensated in particular with regard to incentive pay. Although the level of bank CEO pay has dropped during the financial crisis period, bank CEOs fared much better in comparison to their firms (and, in...

This paper studies the relation between managerial power, the manager's compensation contract, and firm performance when the manager's contract comprises a stock-based pay and a fixed salary. When there is no cap on the manager's salary, the size of the manager's stock-based compensation is the...