The effectiveness of remuneration committees in European banks: Regulation and best practices
Mariantonietta Intonti () and
Antonia Patrizia Iannuzzi
Journal of Financial Regulation and Compliance, 2013, vol. 21, issue 4, 373-396
Purpose - – Following the subprime crisis and the detrimental role played by remuneration practices, an important reform concerned bank remuneration committees, especially in “significant financial institutions”. In light of this consideration, this paper aims to investigate the scope and format of this renewal in order to verify whether and how those bodies are conforming to the new regulatory framework while improving their efficiency and functionality. Design/methodology/approach - – The study was carried out on 30 top European banks through the elaboration of a qualitative analysis model that takes into account both the procedural and the compositional aspects of remuneration committees. The model was used as a benchmark for assessing the effectiveness of the remuneration committees operating within a sample. This assessment was carried out according to the content analysis approach. Findings - – The results show a high diffusion of these bodies within the banks and a gradual expansion, during the time under investigation (three years 2008-2010), of the information provided by them on their tasks and decision-making. In the same time, the study highlights some important criticalities concerning both the composition of the banks' remuneration committees, how they carry out their functions, and the level of disclosure addressed to shareholders and the market in order to formalize the results of their work. Originality/value - – The added value of the analysis is related to the implementation of an “effectiveness remuneration committee rating” applied to a sample of top European banks during the financial crisis.
Keywords: Effectiveness rating; European banks; Remuneration committee; Management compensation; Remuneration policy; Regulation (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/JFRC-11-2012 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrcpp:v:21:y:2013:i:4:p:373-396
Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://emeraldgroupp ... journals.htm?id=jfrc
Access Statistics for this article
Journal of Financial Regulation and Compliance is currently edited by Professor Kevin Keasey
More articles in Journal of Financial Regulation and Compliance from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().