CEO compensation and bank efficiency: an application of conditional nonparametric frontiers
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...
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| Format: | Article |
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Elsevier
2016
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| Online Access: | https://eprints.nottingham.ac.uk/51645/ |
| _version_ | 1848798540534382592 |
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| author | Matousek, Roman Tzeremes, Nickolaos G. |
| author_facet | Matousek, Roman Tzeremes, Nickolaos G. |
| author_sort | Matousek, Roman |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T20:21:24Z |
| format | Article |
| id | nottingham-51645 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:21:24Z |
| publishDate | 2016 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-516452020-05-04T17:51:44Z https://eprints.nottingham.ac.uk/51645/ CEO compensation and bank efficiency: an application of conditional nonparametric frontiers Matousek, Roman Tzeremes, Nickolaos G. 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. Elsevier 2016-05-16 Article PeerReviewed Matousek, Roman and Tzeremes, Nickolaos G. (2016) CEO compensation and bank efficiency: an application of conditional nonparametric frontiers. European Journal of Operational Research, 251 (1). pp. 264-273. ISSN 0377-2217 Bank efficiency; CEO compensation; Conditional efficiency measures; Data envelopment analysis https://www.sciencedirect.com/science/article/pii/S0377221715009613 doi:10.1016/j.ejor.2015.10.035 doi:10.1016/j.ejor.2015.10.035 |
| spellingShingle | Bank efficiency; CEO compensation; Conditional efficiency measures; Data envelopment analysis Matousek, Roman Tzeremes, Nickolaos G. CEO compensation and bank efficiency: an application of conditional nonparametric frontiers |
| title | CEO compensation and bank efficiency: an application of conditional nonparametric frontiers |
| title_full | CEO compensation and bank efficiency: an application of conditional nonparametric frontiers |
| title_fullStr | CEO compensation and bank efficiency: an application of conditional nonparametric frontiers |
| title_full_unstemmed | CEO compensation and bank efficiency: an application of conditional nonparametric frontiers |
| title_short | CEO compensation and bank efficiency: an application of conditional nonparametric frontiers |
| title_sort | ceo compensation and bank efficiency: an application of conditional nonparametric frontiers |
| topic | Bank efficiency; CEO compensation; Conditional efficiency measures; Data envelopment analysis |
| url | https://eprints.nottingham.ac.uk/51645/ https://eprints.nottingham.ac.uk/51645/ https://eprints.nottingham.ac.uk/51645/ |