The Association Between Bank Performance, Board Independence, and CEO Pay-Performance Sensitivity
Article Abstract:
Keywords: Incentives, CEO Compensation, Holding Companies We investigate the extent to which incentive alignment through CEO compensation contracts is employed by boards of large bank holding companies. A substitution-monitoring hypothesis is proposed. Of special interest is the issue of board independence as it relates to outside directors. Our results indicate that the internal monitoring which is supplied by the board is generally effective. However, when financial performance is poor, independent boards make greater use of compensation contracts to align the financial interests of managers and shareholders.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 2000
User Contributions:
Comment about this article or add new information about this topic:
The determinants of foreign bank involvement in U.S. banking markets
Article Abstract:
The determining factors for foreign bank involvement in the US bank market are presented. Loan-deposit spreads, exchange values, and size of the foreign bank markets are some of the determinants.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Insider trading and pay-performance sensitivity: an empirical analysis. Value relevance of mandated comprehensive income disclosures
- Abstracts: Politicians' motives in the rent seeking society. Linking CEO pay to firm performance: empirical evidence from the electric utility industry
- Abstracts: Managerial ownership, dividend and debt policy in the US banking industry. Dividend policy issues in regulated and unregulated firms: a managerial perspective
- Abstracts: The Federal Deposit Insurance Corporation Improvement Act event in the bank commercial loan market. The determinants of foreign bank involvement in US banking markets