CEO Compensation and Bank Performance

Iqbal Athar, Muhammad Khan and Saffar Ali

MPRA Paper from University Library of Munich, Germany

Abstract: This study sets out to discover the determinants of compensation of the chief executive officers in the banking industry of Pakistan. Accounting based performance measures and size of the firm have been used as predictors. Results of the study are consistent with arguments, suggesting significant and positive impact of size (assets) of the firm on CEO compensation while no association is found with either of the performance measure of the firm except income before tax (IBT). Return on Assets and Return on Equity failed to explain the given phenomenon. The study further elaborates that number of employees (NOEMP) greatly influences on CEO compensation but negatively. This relationship may be due to the unique characteristics of Pakistan's social and economic structure.

Keywords: Compensation; Corporate Governance; Corporate Control; Return on Assets; Return on Investment (search for similar items in EconPapers)
JEL-codes: G21 G34 (search for similar items in EconPapers)
Date: 2012-10-15, Revised 2012-09-02
New Economics Papers: this item is included in nep-ban, nep-eff and nep-hrm
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Published in American Journal of Scientific Research 78.9(2012): pp. 93-100

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