Bank CEO Salaries The Relation Between Performance, Ownership Concentration, and CEO Tenure

Bank CEO Salaries The Relation Between Performance, Ownership Concentration, and CEO Tenure We examine whether Douglas and Santerre's 1990 substitutes hypothesis obtains for bank holding companies BHCs i.e. whether degree of ownership concentration and salary incentives are alternative methods of aligning BHC CEO incentives with those of shareholders. Also examined is the relation between CEO salary and bonus and CEO tenure. Using a sample of 95 BHC drawn from the 1990 Forbes magazine compensation survey, we regress CEO salary and bonus against ROE, stock return, two measures of ownership concentration, and a CEO tenure variable. Our results 1 support the substitutes hypothesis as applied to BHCs, and, 2 find a negative relation between CEO salary and bonus and CEO tenure. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Finance Emerald Publishing

Bank CEO Salaries The Relation Between Performance, Ownership Concentration, and CEO Tenure

Managerial Finance, Volume 19 (6): 9 – Jun 1, 1993

Loading next page...
 
/lp/emerald-publishing/bank-ceo-salaries-the-relation-between-performance-ownership-V0cFEzCaxW
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0307-4358
DOI
10.1108/eb013726
Publisher site
See Article on Publisher Site

Abstract

We examine whether Douglas and Santerre's 1990 substitutes hypothesis obtains for bank holding companies BHCs i.e. whether degree of ownership concentration and salary incentives are alternative methods of aligning BHC CEO incentives with those of shareholders. Also examined is the relation between CEO salary and bonus and CEO tenure. Using a sample of 95 BHC drawn from the 1990 Forbes magazine compensation survey, we regress CEO salary and bonus against ROE, stock return, two measures of ownership concentration, and a CEO tenure variable. Our results 1 support the substitutes hypothesis as applied to BHCs, and, 2 find a negative relation between CEO salary and bonus and CEO tenure.

Journal

Managerial FinanceEmerald Publishing

Published: Jun 1, 1993

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off