Pay at the executive suite: How do US banks compensate their top management teams?
The study examines how 166 U.S. banks compensated their top management teams (top 4-5 executives in each bank) during 1993-1996. We observe two tiers of compensation in the executive suite: CEO and the rest. CEOs are paid more, especially in performance contingent compensation. The weight of base salary in CEOâ€™s pay is significantly lower than in other senior managersâ€™ pay, and CEOâ€™s pay performance elasticity is significantly higher. Beyond the CEO, top executives have a similar structure of compensation and similar pay performance elasticities. Our evidence is consistent with agency theory, and with several labor economics models.
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- repec:sae:ilrrev:v:43:y:1990:i:3:p:30-51 is not listed on IDEAS
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- Scott Schaefer, 1998. "The Dependence Of Pay--Performance Sensitivity On The Size Of The Firm," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 436-443, August. Full references (including those not matched with items on IDEAS)
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