Faculty Scholarship 1994 - Present

Determinants of CEO Compensation in the Financial Institutions: An Empirical Investigation

This paper investigates determinants of CEO compensation in the 73 financial institutions. It empirically examined the relationship between CEO compensation and accounting-based and market-based performance of the financial institutions. The results suggest that Financial CEO's compensation is significantly and positively related to ROA and to a less degree associated with ROE and Market-to-book assets. In addition firm size shows a significant positive relationship with CEO's total compensation as well as cash compensation (salary and bonus).