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How to pay the bank CEO

Kevin J. Sigler (Department of Economics and Finance, Cameron School of Business, The University of North Carolina at Wilmington, Wilmington, North Carolina, USA)
Thomas Cornwell (Department of Economics and Finance, Cameron School of Business, The University of North Carolina at Wilmington, Wilmington, North Carolina, USA)

Management Research News

ISSN: 0140-9174

Article publication date: 1 May 1998

953

Abstract

Explores a US bank CEO’s ideal compensation package as a way of attracting and retaining talented individuals. States that there must be a competitive base salary but that total compensation should include car, housing, retirement and health benefits., and stock options. Notes that the federal tax package has placed a limit on eligible compensation and mentions supplemental executive retirement plans (SERPS) as a way of compensating for this. Links pay with bank performance; the CEO’s cash bonuses are tied to the bank’s performance to ensure that the CEO acts in the best interests of the bank and its shareholders. Observes fluctuations in total compensation packages due to tenure, returns on average assets, bank revenues and net incomes or profits of the bank.

Keywords

Citation

Sigler, K.J. and Cornwell, T. (1998), "How to pay the bank CEO", Management Research News, Vol. 21 No. 4/5, pp. 41-44. https://doi.org/10.1108/01409179810781509

Publisher

:

MCB UP Ltd

Copyright © 1998, MCB UP Limited

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