TY - JOUR
T1 - Pay at the executive suite
T2 - How do US banks compensate their top management teams?
AU - Ang, James
AU - Lauterbach, Beni
AU - Schreiber, Ben Z.
PY - 2002
Y1 - 2002
N2 - This study examines how a large sample of US banks compensates their top management teams (i.e., the top four to five highest ranking executives in each bank). We observe two tiers of compensation in the executive suite: the Chief Executive Officer (CEO) and the rest of the top management team. CEOs receive not only greater pay in absolute dollar, but are also rewarded more in relation to performance, as manifested in having a larger portion of their pay in performance contingent compensation. Below the CEO, top executives have similar compensation structure and pay to performance elasticities. The results are robust to a significant size effect, and alternate measures of performance.
AB - This study examines how a large sample of US banks compensates their top management teams (i.e., the top four to five highest ranking executives in each bank). We observe two tiers of compensation in the executive suite: the Chief Executive Officer (CEO) and the rest of the top management team. CEOs receive not only greater pay in absolute dollar, but are also rewarded more in relation to performance, as manifested in having a larger portion of their pay in performance contingent compensation. Below the CEO, top executives have similar compensation structure and pay to performance elasticities. The results are robust to a significant size effect, and alternate measures of performance.
KW - Executive compensation
KW - Non-CEO top executives
KW - Pay performance relations
UR - http://www.scopus.com/inward/record.url?scp=0036241053&partnerID=8YFLogxK
U2 - 10.1016/S0378-4266(01)00165-0
DO - 10.1016/S0378-4266(01)00165-0
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AN - SCOPUS:0036241053
SN - 0378-4266
VL - 26
SP - 1143
EP - 1163
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
IS - 6
ER -