How post-crisis regulation has affected bank CEO compensation

Vittoria Cerasi, Sebastian M. Deininger, Leonardo Gambacorta and Tommaso Oliviero ()

Journal of International Money and Finance, 2020, vol. 104, issue C

Abstract: This paper assesses whether compensation practices for bank Chief Executive Officers (CEOs) changed after the Financial Stability Board (FSB) issued post-crisis guidelines on sound compensation. CEO compensation has become more sensitive to risk, with CEOs in the post-reform period at riskier banks receiving less variable compensation than those at less-risky peers. This was particularly true of investment banks. The changes in compensation practices are in line with the FSB’s Principles and Standards of Sound Compensation, although we do not detect significant differences between banks in jurisdictions that directly implemented the FSB guidelines compared to the other banks.

Keywords: Banks; Managerial compensation; Prudential regulation; Risk-taking (search for similar items in EconPapers)
JEL-codes: G21 G28 G32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Working Paper: How post-crisis regulation has affected bank CEO compensation (2018)
Working Paper: How Post-crisis Regulation Has Affected Bank CEO Compensation (2018)
Working Paper: How post-crisis regulation has affected bank CEO compensation (2017)
Working Paper: How post-crisis regulation has affected bank CEO compensation (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:104:y:2020:i:c:s0261560618304650

DOI: 10.1016/j.jimonfin.2020.102153

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