Chuỗi hội thảo nghiên cứu trong lĩnh vực Ngân hàng – Tài chính – Kinh tế (SOBSR#18)

Research Paper:

CEO compensation and bank efficiency: An application of conditional nonparametric frontiers

Author(s):        Roman Matousek^a and Nickolaos G. Tzeremes^b

^aKent Business School, The University of Kent, Canterbury

^bDepartment of Economics, University of Thessaly, Greece

Presenter: Professor Roman Matousek 

Language: English

Abstract:

The paper investigates in a dynamic context the effect of Chief Executive Officer (CEO) bonus and salary payments on banks’ technical efficiency levels. Our methodological framework incorporates the latest developments on the probabilistic approach of efficiency measurement as introduced by Bădin et al. (2012). We apply time-dependent conditional efficiency estimates to analyse a sample of 37 US banks for the period from 2003 to 2012. The empirical evidence reveals a non-linear relationship between CEO bonus and salary payments and banks’ efficiency levels. More specifically it is reported that salary and bonus payments affect differently banks’ technological change and technological catch-up levels. Finally, the empirical evidence suggests that higher salary and bonus payments are not always aligned with higher technical efficiency levels.

¹ https://www.kent.ac.uk/kbs/our-staff/profiles/matousek_roman.html

Prof. Roman Matousek is a Professor in Banking and Finance at the University of Kent, Kent Business School. Roman also served as Director of the Research Centre for EMEA Banking, Finance, and Economics. Before he joined academia, he worked for public and private financial institutions that include the Czech National Bank, where he held different senior positions – Head of Research and Senior Adviser to Deputy Governor and Chief Executive Director. He also worked as Senior Economist in Citicorp, New York, USA. In CreditAnstalt in Vienna, Austria, he was responsible for Sovereign Risk analyses. Roman’s research has been predominantly focused on theoretical and empirical issues in bank efficiency, microeconomics of banking, financial crises, monetary policy and international finance. Roman serves as an Associate Editor of highly rated academic journals – Journal of International Financial Markets, Institutions, and Money; Journal of Banking and Finance and Managing Editor of International Journal of Monetary Economics and Finance.