CEO compensation and bank’s performance following bank-rescue

IF 1.8 Q2 BUSINESS, FINANCE

International Journal of Managerial Finance Pub Date : 2024-09-18 DOI:10.1108/ijmf-09-2023-0469

Rukaiyat Adebusola Yusuf, Mamiza Haq

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引用次数: 0

Abstract

Purpose

This paper examines the effect of restrictions on executive pay and high CEOs’ compensation on bank performance following the “2008 UK bank rescue policy”.

Design/methodology/approach

Using the difference-in-difference estimation technique we assess the relationship between executive compensation and financial performance of rescued banks relative to non-rescued banks over the period 1999–2019.

Findings

Our main finding indicates that the relationship between executive compensation and financial performance declines in rescued banks relative to non-rescued banks. Further, we document that performance continues to deteriorate in rescued banks relative to non-rescued banks. Our results are robust to different estimation techniques.

Originality/value

This study contributes to the literature that examines the efficacy of government bailouts during the 2008 crisis. To the best of the author’s knowledge, this study is among the first to examine the long-term implications of bank rescue and pay restrictions on executive compensation and performance post–rescue.

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银行救援后首席执行官的薪酬与银行业绩

目的本文研究了 "2008 年英国银行救助政策 "之后，限制高管薪酬和 CEO 高薪酬对银行绩效的影响。此外，我们还发现，相对于未获救银行，获救银行的业绩持续恶化。本研究为研究 2008 年危机期间政府救助效果的文献做出了贡献。据笔者所知，本研究是首批研究银行救助和薪酬限制对救助后高管薪酬和绩效的长期影响的研究之一。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Managerial Finance BUSINESS, FINANCE-

CiteScore

4.10

自引率

0.00%

发文量

期刊介绍： Treasury and Financial Risk Management ■Redefining, measuring and identifying new methods to manage risk for financing decisions ■The role, costs and benefits of insurance and hedging financing decisions ■The role of rating agencies in managerial decisions Investment and Financing Decision Making ■The uses and applications of forecasting to examine financing decisions measurement and comparisons of various financing options ■The public versus private financing decision ■The decision of where to be publicly traded - including comparisons of market structures and exchanges ■Short term versus long term portfolio management - choice of securities (debt vs equity, convertible vs non-convertible)